If the US dollar is the primary currency to consider in any analysis of the forex market, the secondary one is the Japanese yen, and yet there are almost no indices which track this in a similar way. But once again, we have the answer and have therefore developed the JPYX index for the MT5 platform. This is based on the FXCM/Dow Jones index, and takes four major currencies, with an equal weighting to deliver the JPYX index as follows:
- Australian dollar (AUD) – 25%
- New Zealand dollar (NZD) – 25%
- Euro (EUR) – 25%
- US dollar (USD) – 25%
Once again, the index is based on a notional 10,000 mini lot contract size. It is our belief that this simple index provides a ‘real world’ view of strength and weakness in the Japanese yen which is equally important in terms of risk analysis. Whilst the US dollar has increasingly been adopted to fund the carry trade, the Japanese yen remains the key currency in this respect, and with flows into and out off risk assets remaining pivotal for the currency, having an index to track it’s performance against other key currencies is crucial.
Like the QuantumUSDX indicator and the Quantum DXY indicator, the Quantum JPYX indicator can be used in one of three ways:
- First, as an inverse indicator to a major currency pair, helping you get in, stay in and get out
- Second, as a confirming indicator for the Quantum Currency Strength indicator, providing a perspective against other currencies
- Finally, as the ultimate barometer of risk
Whichever approach you adopt, you will no longer have to leave your MT5platform for a view of the Japanese yen! In addition, the indicator is also supplied with two moving averages already applied, the 8 SMA and the 14 SMA to help provide you with further insights into market direction.
The Quantum JPYX indicator works in all timeframes.
Applying the Indicator
Open your MT4 platform and in the main menu, select View > Navigator to open the Navigator window which appears at the left hand side of your workspace.
In the Navigator window, expand the Indicators tree by clicking the “+” symbol. Find the Quantum tree and expand it by clicking the “+” once again to reveal the full list of Quantum Trading indicators.
To start using the indicator, you can click and drag QuantumJPYX from the Navigator to a chart or you can also double-click QuantumJPYX (which will then be applied to the currently selected chart). Doing either one of these will display the Custom Indicator window where you can configure all the various user settings for your Quantum JPYX. These options are grouped and can be accessed by selecting the tabs which will be discussed further in the following sections. Once you are done customizing the indicator’s options, click OK to run the indicator.
Here you can find basic information about the indicator such as its name, description, and version number.
Please make sure that the “Allow DLL imports” option is checked/ticked before running the indicator. This is required by all Quantum indicators to properly communicate with its accompanying DLL file. Alternatively, you can set this option globally by selecting in the main menu, Tools > Options > Expert Advisors tab and checking/ticking the “Allow DLL imports” option. Other than this, please leave other options to their default setting.
You can configure the indicator by changing its variables listed in this tab. We explain these shortly, and for each configurable input of the Quantum JPYX shown below.
All the files that the indicator uses to run is listed here. You can leave this tab as it is.
All the plots of the Quantum JPYX can be configured in this tab. It has five plots but you only ever need to worry about the first three if you like to customize its look and feel.
- The first plot is the indicator’s line chart mode. Its default color is chartreuse.
- The second plot is the indicator’s first moving average line (MA1). Its default color is aqua.
- The third plot is the indicator’s second moving average line (MA2). Its default color is magenta.
This indicator does not use any Levels so this tab is empty.
The indicator’s visibility can be toggled on or off in different contexts with the options in this tab.
Configuring the Indicator
Let’s go back to the Inputs tab and explore the ways on how to customize the settings of your Quantum JPYX.
When running the Quantum JPYX for the first time in your trading account, you need to enter the email you used to register in the Quantum Trading Indicators Enablement System – http://enable.quantumtrading.com/ as part of its verification process. You only need to do this once as the email is stored in the terminal’s global variable cache after it is entered initially. Please make sure that you enter your email correctly and exactly without any extra spaces before and after it. If you made an error, simply fill this field again to update it.
This setting defines the number of bars the indicator processes and this is also the number of bars it displays on the chart. It is set to 200 by default.
This is the first Simple Moving Average with a default setting of 7.
This is the first Simple Moving Average with a default setting of 14.
You can adjust the thickness of the candlesticks by changing the value of this setting.
Bullish Candle Color
This setting allows you to change the color of the bullish candlesticks. Its default color is DodgerBlue.
Bearish Candle Color
This setting allows you to change the color of the bearish candlesticks. Its default color is Red.
Line Chart Mode
The Quantum JPYX indicator attempts to generate its own candlestick chart by default but if this field is set to true, it will use a line chart to display the index.
Line Chart Price Type
When the indicator is set to Line Chart Mode, you can change the price type it uses to plot its line chart using this setting.
This is the variable field that you will need to update, if your FX broker delivers your currency pairs with a prefix. As an example this might be a.EUR/USD, in which case you would need to enter the value a. in the Currency Prefix field. If your currency pairs are delivered with a prefix, then you MUST enter this in this field, otherwise your indicator will not work.
This is the variable field that you will need to update, if your FX broker delivers your currency pairs with a suffix. As an example this might be EUR/USDm, in which case you would need to enter the value m in the currencySuffix field. If your currency pairs are delivered with a suffix, then you MUST enter this in this field, otherwise your indicator will not work.
Making Adjustments to the User Interface
Expanding the Indicator’s Screen Size
To expand the indicator to full size so that it fills the chart, these are the steps to follow:
- Hover your mouse pointer over the double horizontal lines marked with the red arrows above
- A small icon of two parallel lines with the words ‘click drag a border of the window’
- HOLD down the left click on your mouse, and drag these lines to the top of your chart, and release when done
- Hover your mouse over the right hand edge of the chart until a double headed arrow appears
- HOLD down the left click on your mouse, and drag the right hand edge of the chart across to the left and release when done
- Left click on the chart to make it the active window
- Left click on the zoom icon below, to expand your Quantum JPYX indicator to full size. The zoom function is shown below and is found in the standard toolbar below the top level navigation.
Removing the Indicator from the Chart
Open the chart’s Indicator List window by pressing Ctrl+I. You can also right-click the chart and select Indicator List from the context menu.
Select QuantumJPYX and click the Delete button then click the Close button.