Dollar Index DXY indicator MT5 Download - Free - [TradingFinder]

The DXY indicator is an essential and practical tool in MetaTrader 4. This indicator measures the strength of the U.S. Dollar against other currencies and assets. It can be used alone or with other analytical tools as a significant guide in investment decision-making.

Traders can gain insights into future price movements by examining the convergence and divergence between the U.S. Dollar and other currencies.

Indicator Specifications Table

Bullish Trend Analysis

The 1-hour timeframe price chart of the NZD/JPY currency pair shows how the U.S. Dollar Index affects other currencies. As illustrated below, due to its convergence with the U.S. Dollar, the New Zealand Dollar strengthened following an increase in the DXY index. Consequently, the trend in the NZD/JPY chart is bullish.

Bearish Trend Analysis

The 1-hour timeframe price chart of the GBP/CAD currency pair shows how the U.S. Dollar Index affects other currencies. As illustrated below, due to its divergence from the U.S. Dollar, the British Pound (GBP) weakens following an increase in the DXY index. Consequently, the trend in the GBP/CAD chart is bearish.

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

By tracking changes in this index and combining it with other technical and fundamental analyses, traders can gain a precise outlook on the overall trend in financial markets. This indicator allows traders to accurately assess the relative value of the dollar. It can be used in all timeframes and across all financial markets.