Currency Basket - Custom Composite Index Indicator
Version 1.0
Open for future updates
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What It Does
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Combines multiple Currency Pairs / Symbols into a single Composite Index displayed in a separate panel below your chart. Designed for traders who want to track the overall strength or weakness of a specific currency across multiple pairs simultaneously.
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How It Works
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Input: Select up to 5 currency pairs with a common quote currency (e.g., AUDJPY, CADJPY, EURJPY, GBPJPY, USDJPY)
Output: A single line showing the Weighted Average Strength of that currency (JPY in this example)
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Calculation
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Equal weights automatically assigned to enabled pairs
Regular formula: Index = Σ(pair × weight) or Inverted formula: Index = Σ(1/pair × weight)
- For Assets Correlation or Inverse Correlation Setups
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Key Features
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Customizable Components:
Enable/disable up to 5 pairs, type any symbol names
Auto-Equal Weighting: Weights automatically calculated based on enabled pairs
Real-Time Updates: Recalculates on every bar close
Flexible Application: Works with any currency group (JPY crosses, USD pairs, EUR pairs, etc.)
Adjustable Scale: Multiplier parameter for comfortable viewing
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Practical Applications
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Multi-Pair Analysis: View 5 separate JPY pairs as one consolidated index instead of switching between charts
Strength Assessment: Quickly identify if JPY is strengthening or weakening overall versus checking each pair individually
Divergence Detection: Spot when individual pairs deviate from the overall basket trend
Context Building: Use alongside individual pair analysis to understand broader currency dynamics
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Requirements
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All selected pairs must share the same quote currency (e.g., all end in JPY)
Pairs must be available in your broker's symbol list
Works on any timeframe (1-minute to daily)
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Not Included
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This indicator displays historical and current data only. It does not:
Generate trading signals - Coming in future updates
Provide entry/exit recommendations - Coming in future updates
Guarantee any trading outcomes
Predict future price movements
