Simple and power full indicator used by all finance institutions !! - page 6
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Good eye! That's exactly what it is (if you're referring to the harmonic mean, not the geometric.) It also applies to calculating average velocities constrained by distance instead of time. The harmonic mean is useful for calculating the average of rates and ratios. The conventional Dollar Index uses a geometric mean, which is normally applied to areas, volumes, and exponential growth.
I just don't like the Dollar Index. It uses seemingly arbitrary weights, it uses a geometric mean, and worst of all it mixes base currencies instead of consistently using USD for a base in each of it's components. Can anyone speak in it's defense?
I'm afarid I must correct myself!
The conventional dollar index does consistently use USD as the base pair in each component.
USDX = 50.14348112 × EURUSD^(-0.576) * USDJPY^(0.136) * GBPUSD^(-0.119) * USDCAD^(0.091) * USDSEK^(0.042) * USDCHF^(0.036)
The pairs that are not a USD base have a negative exponent, which essentially flips the pair over making USD the base.
Maybe the Dollar Index isn't so bad. I still need to convince myself that the weights are meaningful somehow.
I'm afarid I must correct myself!
The conventional dollar index does consistently use USD as the base pair in each component.
USDX = 50.14348112 × EURUSD^(-0.576) * USDJPY^(0.136) * GBPUSD^(-0.119) * USDCAD^(0.091) * USDSEK^(0.042) * USDCHF^(0.036)
The pairs that are not a USD base have a negative exponent, which essentially flips the pair over making USD the base.
Maybe the Dollar Index isn't so bad. I still need to convince myself that the weights are meaningful somehow.
I agree with you on the weights not being meaningful as the blurb on it suggests that when first created the USDX was set to equal 100, or perhaps the log numbers came from the averageing of the then known GDP numbers.
It is sort of amusing to think of the currency market being similar to an electric circuit with money as the current flowing between countries.
To get China started to trade easily with the world markets, Nixon set them up with a reserve of US dollars as I recall, memory not being hugely accurate though.
can someone help me edit sar ohlc to use heiken ashi ohlc
Hi, I have an MTF indicator that uses sar, however I'd like the sar to calculate heiken ashi ohlc, and not the normal type
Can you tell me how I can do this, my mtf indicator calls to the sar indicator to calculate sar formula, I think it is calling to the internal indicator in mt4 that can not edit
you can skype or email if you can assist and like to talk about it
skype sty671
email sty671@gmail.com
I can also supply the original file that I'm trying to use heiken ashi ohlc for
You can,t use the USDDX for automatic trading,
its simple an indicator that is used to calculate the moves,
the Assets price tend to diverge the USD index price by crossing each other
when this cross happend then you enter in the direction of the asset's price,
prices tend to diverging up to they find there strech points wich is projected by previous
Support Resistence to both of them.
When they start converge to they Equillibrium we hedge our position(better close the old one) and open an new opsite position
when significant trend line is brokken and we keep it up to the price reach the equilibrium zone
You can,t use the USDDX for automatic trading,
its simple an indicator that is used to calculate the moves,
the Assets price tend to diverge the USD index price by crossing each other
when this cross happend then you enter in the direction of the asset's price,
prices tend to diverging up to they find there strech points wich is projected by previous
Support Resistence to both of them.
When they start converge to they Equillibrium we hedge our position(better close the old one) and open an new opsite position
when significant trend line is brokken and we keep it up to the price reach the equilibrium zone
to understand what i mean put EUR/USD and USD/DKK in the same screen