The US dollar sits at the heart of all the financial markets. It is the currency of first reserve. It is the ultimate safe haven currency, and it is the currency in which all commodities are priced. It is the currency which every forex trader should consider – first!
Having a view of the US dollar is paramount in gauging market sentiment, attitude to risk, and money flows into related markets and instruments. If you know which way the USD is headed – the rest is easy.
The Quantum DXY indicator gives you that view of the US dollar, directly on your MT4 platform. It is based on a basket of currencies, which was amended in 1999 with the introduction of the euro. To ensure the index works on all MT4 platforms, the SEK currency has been replaced with the AUD:
- EUR 57.6%
- JPY 13.6%
- GBP 11.9%
- CAD 9.1%
- AUD 4.2%
- CHF 3.6%
The Quantum DXY indicator displays strength and weakness in the US dollar against this basket of currencies. It can be applied to any chart in any timeframe, and will give you an instant view of the US dollar. Alternatively, why not create a separate workspace with multiple timeframes.
The 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 MT4 platform for a view of the US dollar! How cool is that!