Dollar Index DXY indicator for MT4 Download - Free - [TradingFinder]

The Dollar Index (DXY) indicator, or the U.S. Dollar Index, is recognized as an essential tool in the technical analysis of financial markets. This index measures the strength of the U.S. dollar against a basket of major world currencies.

A precise outlook on the overall trend in financial markets can be obtained by tracking changes in this index and combining it with other technical and fundamental analyses. Traders can use this indicator to accurately assess the dollar's relative value.

Indicator Specifications Table

Bullish Trend Conditions

The price chart of the CAD/JPY currency pair on a 4-hour timeframe shows how the Dollar Index affects other currencies. Due to its convergence with the U.S. dollar, the Canadian dollar strengthens against the Japanese yen following the rise in the DXY index, resulting in an upward price trend.

Bearish Trend Conditions

The price chart of the EUR/NZD currency pair in a 1-hour timeframe illustrates the effect of the Dollar Index on other currencies. Due to its divergence from the U.S. dollar, the Euro (EUR) weakens against the New Zealand dollar (NZD) following the rise in the DXY index, resulting in a downward price trend.

Indicator Settings

• Chart theme: Indicator theme;
• MA1 period: First moving average period set to 20;
• MA2 period: Second moving average period set to 40;
• Lookback: Data calculation based on candles according to the number 500.

Conclusion

The Dollar Index (DXY) indicator is an essential tool for traders and investors in financial markets. It allows them to evaluate overall conditions in currency markets and the impact on other assets. This index can be used alone or with other analytical tools as a significant guide in decision-making.