Dollar Index Tracker: Elevate Your Trading with Real-Time USD Insights

The Dollar Index Tracker is an essential tool that calculates and displays the US Dollar Index (USDX / DXY) right beneath your current trading pair chart. This handy feature allows you to effortlessly compare the strength of the US Dollar against a basket of major currencies while analyzing your chosen pair.

The USDX is derived from six key currency pairs: EUR/USD, USD/JPY, GBP/USD, USD/CAD, USD/CHF, and USD/SEK. Each pair contributes differently to the index, with EUR/USD holding the largest weight. Since its introduction in 1973 with a base value of 100, it's become one of the most closely monitored indicators of dollar strength.

USD

How It Works

The Dollar Index Tracker runs the USDX calculation in the background:

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

The result is displayed in a separate sub-window below your chart. You can even customize the display with two moving averages to smooth out the index and highlight trends.

Input Parameters

Core Settings

IndexPairs – Default: "EURUSD, USDJPY, GBPUSD, USDCAD, USDSEK, USDCHF" → Currency pairs used for USDX calculation.
IndexCoefficients – Default: "-0.576, 0.136, -0.119, 0.091, 0.036, 0.042" → Weight of each pair in the calculation.
IndexInitialValue – Default: 50.14348112 → Base value for the USDX formula.

Moving Averages

MA_Period1 (default = 13) – Period of the first moving average. (Set to 0 to disable.)
MA_Period2 (default = 17) – Period of the second moving average. (Set to 0 to disable.)
MA_Mode1 / MA_Mode2 – Method of calculation (SMA, EMA, SMMA, LWMA).

Example Strategies

1. Divergence Detection

If the USDX is rising while EUR/USD is also increasing, this signals that the Euro is significantly stronger than other currencies in the USDX basket.
If the USDX is falling but USD/JPY remains stable, it shows weakness in the JPY compared to the others.

2. Trend Confirmation

When the USDX is trending upwards and your USD pair is following suit, it gives you added confidence to hold your trades longer.

3. Multi-Timeframe Context

Utilize the USDX on higher timeframes (H4/D1) while trading your pair on lower ones (M15/H1) to stay aligned with the overall strength of the dollar.

Why Choose Dollar Index Tracker?

Unlike standard moving average or RSI tools, the Dollar Index Tracker provides direct insight into the world’s leading currency. It serves as a correlation filter for USD trades, helping you:

Avoid false signals in major currency pairs.
Confirm the true strength of the dollar.
Spot divergence setups before they become apparent to the crowd.

By merging comprehensive USDX data with your pair’s chart, you gain a significant edge in decision-making and risk management.

⚠️ Important Note:
Ensure that all six pairs used in the USDX formula (EURUSD, USDJPY, GBPUSD, USDCAD, USDSEK, USDCHF) are visible in your Market Watch window. If not, the indicator may not calculate correctly. If the display seems off, try refreshing the chart (for example, switch to another timeframe and back).