Ie role fundamental harmonic does usually a simple moving average, with a given period, the selected currency pair. Next, calculate the difference between moving averages with the specified periods for each of the indexes belonging to the cluster (EUR, USD, GBP, CHF, JPY, CAD, AUD, NZD), expressed in points.
Calculation of each of the eight buffer indicator is: the value of a pair of MA + (meaning "quick" AI index value of "slow" AI index). Thus, for each of the eight-MA on the pair, with the same periods, added "weight" of one of the indices of the cluster. This method of calculation and display the cluster of currency pairs, allows us to see the cluster slice "of the market at any time, not being tied to any points of reference, etc.
To use the indicator, requires quotes seven currency pairs EURUSD, GBPUSD, USDCHF, USDJPY, USDCAD, AUDUSD, NZDUSD. The indicator works in the main window, on any of the 28 pairs of the above cluster.
Mode all_idx_mode, you can select, display the movement of all eight indices of the cluster (position true) or display only two buffers, with indexes only the base currency and the quote currency (position false).
Variable «period» determines the period moving average is calculated pas chosen currency pair. The value of «period2» specifies the period of "fast" AI, which is calculated by index. The value of «period2» requires a period of "slow" AI, which is calculated by index. Value MA_Method, allows you to select the sliding smoothing algorithm (0-simple, 1-exponential, 2-smoothed, 3-linear-vzeshennoe). Variable «Price» specifies, for some constants price will be calculated averages. The value of «Shift» is to change, if required shifted moving averages, on the time axis.
The indicator should not be used to find support or resistance level. The main signal is the interposition of the cluster relative sliding.
For example, in the figure below (Fig.1), with off multicurrency mapping (all_idx_mode = false), the uptrend is defined by the fact that moving up, but at the same time, moving from the "weight" of a pound is growing faster (ie is above) moving average with the weight of the U.S. dollar. While all_idx_mode = false, index base and quote currency defined automatically.
Рис. Fig. 1 1
More interesting results are obtained when the multicurrency mode (all_idx_mode = true).
Рис. Fig. 2 2
Рис. Fig. 3 3
The indicator is closed on the currency pair GBPJPY (Fig. 2). Consider, for example a sliding motion with the weight of the New Zealand dollar and British pound.
The figure shows that 2009.11.18 09:00, New Zealander started falling against the euro, the pound was lower while New Zealander.So, if you open a short position on a pair GBPNZD, closes it is not yet worth it. But open does not make sense, because as a New Zealander, as the pound is falling.
2009.11.18 at 22:00 New Zealander has declined, the U.S. dollar, the pound at the same time began to slow. 2009.11.19 at 02:00 New Zealand dollar dropped on the Japanese yen and the pound, however, slowed the decline.The way down is open, you can take a risk and buy the British pound for the New Zealand dollar. If you open a short position on GBPNZD, it is safely closed. 2009.11.19 at 06:00, the transaction is confirmed, the position is to hold before the correction (2009.11.20 10:00).
Thus, the indicator allows the analysis of all 28 pairs of the cluster, while considering only one open schedule.
Indicator, because of the use of moving averages is lagging, but nevertheless, use it for multi-analysis, preferably.
