OPEN-SOURCE SCRIPT
CBR - USD Correlation

Fundamentals
The idea for this script is based on Fundamentals.
I wanted to verify the strength/weakness of the US dollar against other major economies
This will keep me on the right side of the "trend" .. bullish or bearish ?
In short, because Fundamentals Analysis are reflected via economic updates which influences what the price will be doing for the next couple of days
I think it is fair to have an "Indy" that will look at the moving averages across these pairs, because if the dollar sentiment changes, this will be reflected across the major economies
How to use it
This is not a buy/sell entry "Indy", nor a RSI type "Indy" where I tried to calculate overbought/oversold areas..
In fact, when this indy hits anything over 5 to max ( which is 12 ) ..that is a very strong signal and should be seen as such..bearish or bullish
If you want to test it out, I would suggest use a plain chart ( naked chart ) with a 20 or 50 MA ( depending on your TF) and see how the currency pair e.g EUR/USD correlates with this indy. The default pairs are AUD/USD, NZD/USD, GBP/USD and USD/JPY, with a main chart on EUR/USD
Timeframes
1m and 5m charts, change the MA values to 3 ( short), 20 ( medium), 50 ( long) or even more, else there are too many false positives.
1H and higher timeframes works well with the current default values.
I
The idea for this script is based on Fundamentals.
I wanted to verify the strength/weakness of the US dollar against other major economies
This will keep me on the right side of the "trend" .. bullish or bearish ?
In short, because Fundamentals Analysis are reflected via economic updates which influences what the price will be doing for the next couple of days
I think it is fair to have an "Indy" that will look at the moving averages across these pairs, because if the dollar sentiment changes, this will be reflected across the major economies
How to use it
This is not a buy/sell entry "Indy", nor a RSI type "Indy" where I tried to calculate overbought/oversold areas..
In fact, when this indy hits anything over 5 to max ( which is 12 ) ..that is a very strong signal and should be seen as such..bearish or bullish
If you want to test it out, I would suggest use a plain chart ( naked chart ) with a 20 or 50 MA ( depending on your TF) and see how the currency pair e.g EUR/USD correlates with this indy. The default pairs are AUD/USD, NZD/USD, GBP/USD and USD/JPY, with a main chart on EUR/USD
Timeframes
1m and 5m charts, change the MA values to 3 ( short), 20 ( medium), 50 ( long) or even more, else there are too many false positives.
1H and higher timeframes works well with the current default values.
I
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.