Dollar Index Tracker - See the Dollar Index right below your chart.

Category: Correlation & Strength Indicators

Last updated: 2025-09-25

Terminal: MT4

Preferred pairs: All

Timeframe: Any

What Is Dollar Index Tracker?

Dollar Index Tracker is an MT4 indicator that calculates and displays the US Dollar Index (USDX / DXY) directly below the chart of your current trading pair. This makes it easy to compare the strength of the US Dollar against a basket of major currencies while analyzing your pair at the same time.

The USDX is based on six major pairs: EUR/USD, USD/JPY, GBP/USD, USD/CAD, USD/CHF, and USD/SEK. Each pair has a weight in the formula, with EUR/USD having the largest share. The index was introduced in 1973 at a base value of 100 and has been one of the most followed measures of dollar strength ever since.

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Why Is It Useful?

When trading USD-based pairs, it is critical to understand whether the US Dollar is strongening or weakening overall.

✅ Confirm USD strength or weakness directly on your chart.
✅ Spot divergences between USDX and your trading pair (e.g., if USDX rises but your USD pair falls).
✅ Add an extra layer of confidence to your entries and exits.
✅ Quickly measure how much of the move is pair-specific vs. broad dollar strength.

This is especially helpful for day traders and swing traders working with majors like EUR/USD, GBP/USD, and USD/JPY.

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How It Works

Dollar Index Tracker runs the USDX calculation formula in the background:

USDX = 50.14348112 × EURUSD^-0.576 × USDJPY^0.136 × GBPUSD^-0.119 × USDCAD^0.091 × USDSEK^0.042 × USDCHF^0.036

It then displays the result in a separate sub-window below your chart. You can customize the display with two moving averages to smooth the index and highlight trends.

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Input Parameters

Core Settings

• IndexPairs – Default: "EURUSD, USDJPY, GBPUSD, USDCAD, USDSEK, USDCHF" → currency pairs to use for USDX calculation.

• IndexCoefficients – Default: "-0.576, 0.136, -0.119, 0.091, 0.036, 0.042" → weight of each pair in the calculation.

• IndexInitialValue – Default: 50.14348112 → base value for USDX formula.

Moving Averages

• MA_Period1 (default = 13) – Period of the first moving average. (Set 0 to disable.)

• MA_Period2 (default = 17) – Period of the second moving average. (Set 0 to disable.)

• MA_Mode1 / MA_Mode2 – Method of calculation (SMA, EMA, SMMA, LWMA).

MT4-Specific

• USDX_PriceType – Which price to display (Close, Open, High, Low).

MT5-Specific (if applicable)

• MaxBars – Maximum bars to calculate (0 = unlimited).

• MA_PriceType1 / MA_PriceType2 – Applied price for moving averages.

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Example Strategies

1. Divergence Detection

• USDX rising but EUR/USD also rising → signal that EUR is much stronger than other USDX basket currencies.

• USDX falling but USD/JPY not dropping → shows JPY weakness compared to others.

2. Trend Confirmation

• If USDX is trending up and your USD pair is also moving in favor, you have extra confirmation to hold trades longer.

3. Multi-Timeframe Context

• Use the USDX on higher timeframes (H4/D1) while trading your pair on lower ones (M15/H1) to stay aligned with overall dollar strength.

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Why Choose Dollar Index Tracker?

Unlike standard MA or RSI tools, Dollar Index Tracker gives you direct insight into the world’s most important currency. It acts as a correlation filter for USD trades, helping you:

• Avoid false signals in majors.

• Confirm the real strength of the dollar.

• Identify divergence setups before the crowd.

By combining broad USDX data with your pair’s chart, you gain an edge in decision-making and risk control.

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⚠️ Important Note:
Make sure all six pairs used in the USDX formula (EURUSD, USDJPY, GBPUSD, USDCAD, USDSEK, USDCHF) are visible in your Market Watch window, otherwise the indicator may not calculate correctly.

If the display looks incorrect, try refreshing the chart (e.g., switch to another timeframe and back).