USDX (metaTrader indicator) — calculates the dollar index (USDX or DXY) using the EUR/USD, USD/JPY, GBP/USD, USD/CAD, USD/CHF and USD/SEK currency pairs. The formula used for calculation is the following:

USDX = 50.14348112 × EURUSD^-0.576 × USDJPY^0.136 × GBPUSD^-0.119 × USDCAD^0.091 × USDSEK^0.042 × USDCHF^0.036

The resulting indicator resembles USDX — a dollar index traded on ICE. The index was introduced in 1973 at an initial value of 100. The rules for its calculation were updated only once — in 1999 to reflect the introduction of euro.

The presented indicator is displayed in form of candlesticks (metaTrader 5 version) or a line (metaTrader 4 version) with two removable and customizable moving averages. The indicator is shown in the separate chart window and may complement the research of any dollar-based currency pair.

Although the USDX indicator is available for both MT4 and MT5 versions of the platform, the MT5 version is much more robust than the MT4 one, offering faster, more accurate and up-to-date index calculation. The metaTrader 5 version also displays the whole candles, while metaTrader 4 users have to choose, which line to draw — Open, High, Low or Close.

It is very easy to modify the given USDX indicator to calculate and display any other currency index.

EUR/USD, USD/JPY, GBP/USD, USD/CAD, USD/CHF and USD/SEK currency pairs should be added to your Market Watch window for this indicator to work. You might need to modify the input parameter IndexPairs for currency pairs to reflect their names given by your broker.

If the indicator displays incorrectly, try reloading; for example, by toggling the chart's timeframe.

Input parameters used in both MT4 and MT5 versions of USDX:

• IndexPairs (default = "EURUSD, USDJPY, GBPUSD, USDCAD, USDSEK, USDCHF") — currency pairs' names to use in calculation.
• IndexCoefficients (default = "-0.576, 0.136, -0.119, 0.091, 0.036, 0.042") — currency pairs' coefficients to use in calculation. The order of coefficients matters; each coefficient corresponds to its currency pair.
• IndexInitialValue (default = 50.14348112) — initial value for USDX calculation.
• MA_Period1 (default = 13) — period of the first moving average. Set to 0 to turn it off.
• MA_Period2 (default = 17) — period of the second moving average. Set to 0 to turn it off.
• MA_Mode1 (default = 0) — method of calculation of the first moving average: 0 — MODE_SMA, 1 — MODE_EMA, 2 — MODE_SMMA, 3 — MODE_LWMA.
• MA_Mode2 (default = 0) — method of calculation of the second moving average.

Input parameters only for MT4 version of USDX:

• USDX_PriceType (default = 0) — type of price to display for USDX: 0 — PRICE_CLOSE, 1 — PRICE_OPEN, 2 — PRICE_HIGH, 3 — PRICE_LOW, 4 — PRICE_MEDIAN, 5 — PRICE_TYPICAL, 6 — PRICE_WEIGHTED.

Input parameters only for MT5 version of USDX:

• MaxBars (default = 500) — maximum number of bars to calculate the indicator on. Set to 0 for unlimited bars calculation.
• MA_PriceType1 (default = PRICE_CLOSE) — type of price to calculate the first moving average on.
• MA_PriceType2 (default = PRICE_CLOSE) — type of price to calculate the second moving average on.
• EventNumber (default = 191) — number of the event for MCSpy indicator. You do not have to modify this parameter if you do not use MCSpy for some other indicators or expert advisors.

As you can see, the indicator looks quite different depending on the version of the metaTrader platform used. In addition, MT5 version is a true multi-currency indicator and reacts immediately on every tick in any of the index currency pairs.

While no trading signals can be offered by the USDX on its own, it can be used in comparison with the chart of some dollar-based currency pair. It might be a good idea to buy when the USDX declines but the current currency pair is rising, or sell when the USDX goes up but the currency pair is falling. Such divergence would mean that the currency pair is much stronger than the other components of the dollar index.

Additional advantage of this indicator is the use of the moving average on the USDX to detect the current trend.