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