Technical indicators / EUR_USD index

Formula

Trading use

Computer indicator EUR_USDindex, containing two indicators for the best performance, was designed to identify several major factors which can assist in active stock market trading.

From the practical point of view, EUR_USDindex is not a signal indicator for MetaTrader. As in the case with volatility, the index helps to define the subsidiary element.

• If EURx and USDx are in the wide range, it usually signifies the pronounced market trend. In this case it is possible to apply trend trading system.
• If EURx and USDx are in the close range, the market is in flat position. Thus, in such situation the break above resistance or below support levels would be more beneficial.
• The crossing of the two lines of the index confirms a new powerful market trend. In this situation the price can form new local lows or highs.