In your indicator all currencies are shown correctly (in theory, didn’t check source code) against the USDx basket – except one: the USD itself. USDx is a “basket” of different currencies with different weight for each one. Based on this – the “pure” USD currency cannot equals its index or “basket”. If you watch the charts and sum up the relative movement of the USD, you will notice that sometimes its moves are not in perfect correlation to its index. The indicator should show those relative movements.
Ok! This can only mean that the very basic math of your ‘Spaghetti’ indicator is a little or more than just a little different than the simple formulas I described in http://penguintraders.com/forums/topic/a-flexible-and-compact-currency-strength-indicator/page/8/#post-8610. As I stated before: I can’t tell and I can’t check, because I simply don’t have any detailed knowledge about your indicator. I can only ‘guess’ that another variable is involved in your formula, maybe some delta(volume) or ROC(volume), or whatever.
I repost my simple formula scan here for convenience. This is what my indicator shows, basically. Would you say that these simple formulas are correct?
s.
A good trader is a realist who wants to grab a chunk from the body of a trend, leaving top- and bottom-fishing to people on an ego trip. (Dr. Alexander Elder)
