Overview

The Quantum GBPX is the latest addition to our suite of currency indices, and one which we have been asked for many times, and even more so since Brexit. It is an index which has taken us some time to develop, and through a series of complex calculations draws its primary data from a basket of currencies based on the old style dollar index, the Dixie. This is converted to a chart for the British pound. The result is an accurate index which describes strength and weakness for the GBP currency in all timeframes.

The underlying basket and weighting is as follows, with the SEK replaced with the AUD. The percentages are as follows:

  • EUR 57.6%
  • JPY 13.6%
  • GBP 11.9%
  • CAD 9.1%
  • AUD 4.2%
  • CHF 3.6%

The calculated value of the US Dollar is multiplied by the live exchange rate for the GBP/USD currency pair.

The indicator can be used in one of three ways:

  • First, to identify and confirm strength and weakness in major and cross-currency GBP pairs, helping you get in, stay in and get out
  • Second, as a confirming indicator for the Quantum Currency Strength indicator, providing a perspective against other currencies
  • Finally to provide a relevant and consolidated view of the British pound

The indicator plots strength and weakness of the UK pound as a candlestick chart in a separate indicator window when you attach it to the chart. In addition, there are two configurable simple moving averages to make chart reading easier.

Format

By clicking the indicator’s Format button, you can configure the Quantum GBPX Indicator’s inputs and style according to your preferences. The Format button appears as a small cog/gear icon beside the name of the indicator at the chart. Clicking the button shows a dialog box for configuring the Inputs and Style options.

Inputs

MA1 Period

This is the period of one of the 2  simple moving averages available on the GBPX. It is set to 7 by default. Though this is the faster moving average of the two, you are free to set this to any other timeframe to suit your personal preferences.

MA2 Period

This is the period of the second simple moving average for the GBPX. It is set to 14 by default. Though this is the slower moving average, you are free to set this to any other time frame of your choice.

Line Chart Mode

The Quantum GBPX indicator uses a candlestick plot by default, but if this property is enabled, it will use a line plot to display the index.

Style

TradingView allows you to customize the indicator’s appearance by changing the properties of each of its plots/lines.

GBPX (Candlestick)

This forms the body (open and close price) of the index’s candlesticks.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color 0 is set to blue which is the default color of bullish candlesticks. You can click the color box to choose another color from a palette.
  • Color 1 is set to red which is the default color of bearish candlesticks. You can click the color box to choose another color from a palette.

Wick

This forms the shadow (high and low price) of the index’s candlesticks.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to black. You can click the color box to choose another color from a palette.

GBPX (Line)

This line plots the index when the indicator is in Line Chart Mode.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to dark pink. You can click the color box to choose another color from a palette.
  • Thickness is set to 3. Slide the knob to the right to increase the line’s thickness further or slide it to the left to decrease it.
  • Type of plot is set to Line. Please keep this setting.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

MA1

This line plots the first simple moving average on the indicator.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to cyan. You can click the color box to choose another color from a palette.
  • Thickness is set to 1. Slide the knob to the right to increase the line’s thickness.
  • Type of plot is set to Line. Please keep this setting.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

MA2

This line plots the second simple moving average on the indicator.

  • Visible by default, you can untick the checkbox beside its name to hide this line in the chart.
  • Color is set to magenta. You can click the color box to choose another color from a palette.
  • Thickness is set to 1. Slide the knob to the right to increase the line’s thickness.
  • Type of plot is set to Line. Please keep this setting.
  • The last option allows you to display a horizontal line that helps you track its current level in the chart. Tick the Price Line checkbox to enable this feature.

Precision

This determines the number of decimal places the indicator uses to display the current value of its lines. You can adjust this by choosing from a drop-down list.

Scale

You can choose either Pin to Right or Pin to Left.

  • Pin to Right is the default option. This displays the indicator labels at the right-hand side of the indicator.
  • Pin to Left displays the indicator labels at the left-hand side of the indicator.