I would not like to state the obvious, but the US dollar is the most important currency for traders, and not only in the Forex market. Without a clear idea of the USD, the trading process will resemble driving a car in fog. It’s only a matter of time before an accident happens.
That is why we have developed two USD indices. The first is called Quantum DXY, and the second is called Quantum USDX. What is their difference?
The impetus for the creation of Quantum USDX was the fact that, according to many Forex traders, the old DXY index, which underlies it, is too “heavily weighted” against European currencies. Indeed, only the share of the Euro is 58%! Moreover, there are no commodity currencies at all!
Quantum USDX was created to provide a more “balanced” picture of the USD, which would be more indicative in the modern world, so to speak. It presents four equally weighted currencies in the same way as in the Quantum JPY indicator. The list of these currencies is as follows:
- Pound Sterling
- Japanese Yen
- Australian Dollar
The Quantum USDX indicator shows the strength and weakness of the USD against the currency basket. It can be used on any chart of any timeframe. With the help of the indicator, you will get an instant picture of the USD. Alternatively, you can create a separate workspace for working with multiple timeframes.
[spoiler title=”Read More…”]
The indicator can be used in three ways::
- First: as a reverse indicator for the main currency pair, which will help you determine the entry and exit points
- Second: as a confirmation indicator to work in conjunction with the Quantum Currency Strength indicator to assess the outlook against other currencies
- And finally, as the main risk barometer
No matter what approach you choose for yourself, you will no longer have to be distracted from the MT4 terminal to analyze the situation for USD! Isn’t that great!
Click here to learn how to set up the Quantum USDX indicator.