This indicator provides a decomposition of a Forex symbol price changes into 2 its currencies. The indicator splits recent changes in value of current symbol XXXYYY into 2 parts—each for its own currency XXX and YYY against a given 3-rd currency ZZZ. The value is calculated in account currency, and every actual number is equal to virtual profit of trading 1 lot of corresponding symbol for specified period of bars (see description of parameters below).
The indicator displays several lines:
- White Thick Line—Virtual profit/loss of trading buy 1 lot of current symbol XXXYYY;
- Green Thin Line—Virtual profit/loss of trading buy 1 lot of XXXZZZ (or inverse) symbol;
- Red Thin Line—Virtual profit/loss of trading buy 1 lot of YYYZZZ (or inverse) symbol;
- Dotted Yellow Line—Sum of green and red lines; it can be treated as a local measure of XXX and YYY correlation, as well as estimation of XXX vs YYY basis range.
IMPORTANT! Both symbols constructed from XXX plus ZZZ currencies (in proper order) and YYY plus ZZZ currencies (in proper order) must be available in Market Watch.
- Base—3-rd currency which is used to split current symbol; by default—"JPY"; should differ from any currency in work symbol of current chart, for example, "JPY" is ok for EURUSD chart;
- Delta—Number of bars used to calculate virtual profit/loss; by default—0, which means the number of bars in day, for example, 24 for H1.