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:

  1. First, to identify and confirm strength and weakness in major and cross-currency GBP pairs, helping you get in, stay in and get out.
  2. Second, as a confirming indicator for the Quantum Currency Strength indicator, providing a perspective against other currencies.
  3. 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.

Settings

The Settings 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 which are part of the GBPX indicator. 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

GBPX (candlestick)

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

  • You can hide or display all candlesticks (when Line Chart Mode is disabled) in the index using the checkbox.
  • You can customize the color and opacity of the bullish and bearish candlesticks by clicking the color boxes. Color 0 is the color of bullish candlesticks which is blue while Color 1 is the color of bearish candlesticks which is red.

Wick

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

  • You can hide or display the wicks of the candlesticks in the index using the checkbox.
  • You can customize the color and opacity of the wicks by clicking the color boxes.

Border

This is a thin line that wraps the body of the index’s candlesticks.

  • You can hide or display the border of the candlesticks in the index using the checkbox.
  • You can customize the color and opacity of the border by clicking the color boxes.

GBPX (line)

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

  • You can hide or display the GBPX line (when Line Chart Mode is enabled) using the checkbox.
  • You can customize the color, opacity, and thickness of this plot by clicking the color box. The default color is violet, and the thickness is set to 3.
  • The second box allows you to change the plot type and enable the Price Line. The Price Line is a horizontal line that keeps track of the plot’s current value. Changing the plot type is not recommended.

MA1

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

  • You can hide or display the MA1 line using the checkbox.
  • You can customize the color, opacity, and thickness of this plot by clicking the color box. The default color is cyan, and the thickness is set to 1.
  • The second box allows you to change the plot type and enable the Price Line. The Price Line is a horizontal line that keeps track of the plot’s current value. Changing the plot type is not recommended.

MA2

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

  • You can hide or display the MA2 line using the checkbox.
  • You can customize the color, opacity, and thickness of this plot by clicking the color box. The default color is magenta, and the thickness is set to 1.
  • The second box allows you to change the plot type and enable the Price Line. The Price Line is a horizontal line that keeps track of the plot’s current value. Changing the plot type is not recommended.

Precision

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

Alerts

The GBPX indicator has 1 alert condition.

MA Crosses

Alert Conditions

  1. GBPX MA Cross

Condition

Triggers when the 2 moving average plots of the indicator cross each other

Alert message

Example:

GBPX moving averages crossed at MA1 = {value of first MA} | MA2 = {value of second MA}