Dollar Index (DXY) Candles [Loxx]

loxx Updated   
Dollar Index (DXY) Candles is an educational/experimental indicator that attempts to recreate the Dollar Index DXY: DXY .This is useful so others traders can see how the DXY is calculated.

The U.S. Dollar Index (USDX, DXY, DX) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of U.S. trade partners' currencies. The Index goes up when the U.S. dollar gains "strength" (value) when compared to other currencies.

The index is maintained and published by ICE (Intercontinental Exchange, Inc.), with the name "U.S. Dollar Index" a registered trademark.

It is a weighted geometric mean of the dollar's value relative to following select currencies:

Euro (EUR), 57.6% weight.
Japanese yen (JPY) 13.6% weight.
Pound sterling (GBP), 11.9% weight.
Canadian dollar (CAD), 9.1% weight.
Swedish krona (SEK), 4.2% weight.
Swiss franc (CHF) 3.6% weight.

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

These candles won't match the ticker DXY dollar for dollar, but it comes very close. Either way, the general trend and volatility of this synthetic recreation is the same as the DXY.

Read more here: https://en.wikipedia.org/wiki/U.S._Dollar_Index
Release Notes:
Small update to add the multiplier.

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Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.


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