Alternative and common approaches in the construction of TC - page 7

 
Cram all the FIs you are interested in into Recycle2 at once and see the level of correlation. If you find it too high, remove the ones that make a small contribution.
 
leonid553:


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Does Kirkorov react to the market situation? Like blink his left eye - he signals to buy, his right eye - to sell, with two - he doesn't like the pink blouse, sings - he will punch his face?) Useful turkey)

 
hrenfx:
Is the following equation true: EURX / USDX == EUR / USD ?


No, MAs smoothed still converge under certain assumptions ;)

Smoothing is better with logarithms - there is no lag and there is no need to normalise data for visual display

Files:
 

Then is it even worth taking these indices seriously when equality is not maintained?

Or is EURX/USDX a reflection of a fair EUR/USD price, so can we say that EUR/USD will always tend towards EURX/USDX?

 
hrenfx:
Is the following equation: EURX / USDX == EUR / USD ?


There are synthetic indices for all currencies in DTz LiteForex.

You can (to whom it may interest) - directly compare them with the pairs of the same name.

eurlfx - eurusd

 
hrenfx:

Or is EURX/USDX a reflection of a fair EUR/USD price, so we can say that EUR/USD will always trend towards EURX/USDX?

If it were that simple, then you could trade either EURUSD or _DXY based on calculated data, there is nothing in indices that can give a forecast, I have been spinning indices for 3 months, Victor seems to have been doing the same - he even switched to MT5 because of forecast expectations, but alas - I believe that currency indices are a reflection of history that gives food for thought to economists and nothing more. FX is such a speculative market, that any currency can be "driven" to new historical levels in a week, and the crosses of this currency will be at historical maximums/minimums and it is impossible to forecast when the market will start to roll back to a logical, economically justified fair price, i.e. to a certain balance in accordance with the currency indices

ZS: a little off-topic, but I am doing research similar to https://www.mql5.com/ru/forum/129152, I believe that the informational/insider component may be present in the form of some kind of patterns on the charts, i.e. as TA says: the price reflects all changes, and the charts are the object of analysis

 
Yeah, spoke ironically about equality and fair price. The indices are rubbish.
 
leonid553:

eurlfx - eurusd

To compare logically is: EURLFX / USDLFX ~ EURUSD.
 
By the way, you can stick Recycle2 together with USDLFX majors and immediately see the exact formula that LiteForex uses to calculate its dollar index.
 
hrenfx:
Cram all the FI you are interested in all at once into Recycle2 and see the level of correlation. If you find it too high, remove the ones that make a small contribution.

hrenfx , I haven't got into the hang of using these indulators yet. I've already put them all in mt4 though. I am going to do it tomorrow.

If it's not difficult (when I have the time) - give me a good estimate of the optimum size of European bonds in the entry variant:

FGBMH1 - vs (FGBLH1+GFBSH1)