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Power of USD is a VertexFX indicator that calculates
the strength of the US Dollar (USD) with respect to
major USD forex pairs. It should be traded on USD
based pairs, namely - AUDUSD, EURUSD, GBPUSD,
NZDUSD, USDCAD, USDCHF, and USDJPY.
The US Dollar accounts for nearly 80% of the world’s
currency transactions and therefore forex traders
rely on trends in various USD-based forex pairs to
gain insights into the strength of the US Dollar.
The PowerOfUSD indicator calculates the equal-
weighted strength of USD from the seven major USD
pairs. The formula of Power of USD is listed below:
PowerUSD = (USDCAD + USDCHF + USDJPY / 100.0 –
AUDUSD – EURUSD – GBPUSD -NZDUSD) / 7
Currencies that are denominated in USD are
subtracted from currencies where USD is the base
currency. When the USD exhibits strength, the Power
of USD indicator falls, whereas when the USD
exhibits weakness it rises. It should be noted that
the value of USDJPY is divided by 100 to adjust for
the base value of Yen.
When USD becomes strong, the value of AUDUSD,
EURUSD, GBPUSD, and NZDUSD fall – because a lesser
quantity of USD can be purchased with these
currencies. At the same time, the value of USDCAD,
USDCHF, and USDJPY rises because more quantities of
CAD, CHF, and JPY can be purchased respectively
using USD. When the net effect result, which is the
Power of USD indicator value is falling, it implies
a strong and confirmed rise in the USD.
This indicator should be used only on USD based
pairs, namely, EURUSD, AUDUSD, GBPUSD, NZDUSD,
USDCHF, USDCAD, and USDJPY. Signals generated for
USD denominated pairs, namely AUDUSD, EURUSD,
GBPUSD, and NZDUSD should be reversed for non-USD
denominated pairs, namely, USDCAD, USDCHF, and
USDJPY.
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the strength of the US Dollar (USD) with respect to
major USD forex pairs. It should be traded on USD
based pairs, namely - AUDUSD, EURUSD, GBPUSD,
NZDUSD, USDCAD, USDCHF, and USDJPY.
The US Dollar accounts for nearly 80% of the world’s
currency transactions and therefore forex traders
rely on trends in various USD-based forex pairs to
gain insights into the strength of the US Dollar.
The PowerOfUSD indicator calculates the equal-
weighted strength of USD from the seven major USD
pairs. The formula of Power of USD is listed below:
PowerUSD = (USDCAD + USDCHF + USDJPY / 100.0 –
AUDUSD – EURUSD – GBPUSD -NZDUSD) / 7
Currencies that are denominated in USD are
subtracted from currencies where USD is the base
currency. When the USD exhibits strength, the Power
of USD indicator falls, whereas when the USD
exhibits weakness it rises. It should be noted that
the value of USDJPY is divided by 100 to adjust for
the base value of Yen.
When USD becomes strong, the value of AUDUSD,
EURUSD, GBPUSD, and NZDUSD fall – because a lesser
quantity of USD can be purchased with these
currencies. At the same time, the value of USDCAD,
USDCHF, and USDJPY rises because more quantities of
CAD, CHF, and JPY can be purchased respectively
using USD. When the net effect result, which is the
Power of USD indicator value is falling, it implies
a strong and confirmed rise in the USD.
This indicator should be used only on USD based
pairs, namely, EURUSD, AUDUSD, GBPUSD, NZDUSD,
USDCHF, USDCAD, and USDJPY. Signals generated for
USD denominated pairs, namely AUDUSD, EURUSD,
GBPUSD, and NZDUSD should be reversed for non-USD
denominated pairs, namely, USDCAD, USDCHF, and
USDJPY.
[You must be registered and logged in to see this link.]
plugins/free/power-of-usd-.html[You must be registered and logged in to see this image.]
