FXI - MultiBar Basket
The FXI - MultiBar Basket indicator displays the plots the strength of a single currency, such as the EUR, over two separate time frames and their difference. In the below picture, the FXI - MultiBar Basket indicator is showing the relative strength of the EUR over a 8 and 13 day period. Buy looking at the difference between these two values you can see if the EUR is gaining or losing strength at any given time.
The Header Line displays the settings for the FXI – MultiBar Basket indicator. They are as follows:
- D1 = Timeframe -- The left most text indicates the timeframe that is being analyzed. In the image above, the "D1" represents that daily bars are being examined.
- EUR = Currency – This is the currency pair that is being tracked by the indicator
- PER(8,13) = Periods -- The next element shows the two time periods that are being examined. The "PER(8,13)" indicates that 8 and 13 periods back are being examined to judge the strength of the currency of a pair.
- EMA(3) = Smoothing -- The third item displays the type and number of periods for the smoothing of the analysis. We calculate the strength of each individual currency of a pair and then smooth the results by the number of periods and with an averaging methodology described by this item. The "EMA(3)" shows that the indicator is using an Exponential Moving Average over 3 periods to smooth the results.
- PRC(T) = Price Type -- This element describes the type of price that is being used for the calculation. The "PRC(T)" describes a Typical price which is the (H+l+C)/3.
- AVG = Calc Type -- The last item describes whether we are averaging of summing the results. The "AVG" shows that we are averaging the strength of each currency in the pair against all other individual currencies as opposed to summing the strength of each currency in the pair against all other currencies. We recommend using SUM for lower timeframes and AVG for higher timeframes. This way you can get results that are useful and readable.
The body displays the data of the FXI – MultiBar Basket indicator. The individual elements are as follows:
If you are interested in trying the FXI - Velocity Instant indicator, please go to the Downloads page to get the setup package.
- Red line -- The red line is the strength of the currency over the shorter timeframe.
- Green line -- The green line is the is the strength of the currency over the longer timeframe.
- Histogram Bars -- The histogram bars show the difference in strength between the red line and the green line. It is the divergence between the strength of the currency in the shorter time frame vs. the longer timeframe.