USD Macro Strength Index

The USD Macro Strength Index is a custom indicator designed to assess and visualize the overall strength or weakness of the US Dollar (USD) across major currency pairs. It achieves this by calculating a weighted average of USD-related price changes over a defined lookback period and displaying the results as a color-coded histogram with optional smoothed index and signal lines.

? Key Features:

• Macro USD Sentiment Analysis:
  Uses six major USD pairs ( EURUSD , USDJPY , GBPUSD , AUDUSD , USDCAD , USDCHF ) to compute a composite index. Each pair is weighted based on market liquidity to enhance accuracy.

• Dual Histogram Display:
  Positive values (USD strength) and negative values (USD weakness) are plotted as histograms. These colors can be inverted via the InvertDisplay setting for alternate visual interpretation.

• Smoothed Index & Signal Line:
  The index line (USDStrength) is exponentially smoothed to reduce noise, while the signal line adds a second layer of smoothing for crossover-based analysis. These help identify trends and reversals.

• Crossover Alerts (Optional):
  If enabled, the indicator will alert the user when a bullish or bearish crossover occurs between the strength index and the signal line, indicating a potential USD shift.

• Selective Calculation:
  Includes a CalculateOnNewBar option to reduce performance load by processing only on new candles, and a MaxBarsToProcess limit to control back-calculation depth.

• Customizable View:
  You can toggle line visibility ( ShowLines ), invert visual logic ( InvertDisplay ), and restrict the index to major pairs only ( UseMajorPairsOnly ), offering flexibility for different trading strategies.

• Professional Plotting:
  Uses four indicator buffers: two for the histogram (positive/negative), one for the smoothed index, and one for the signal line, all plotted in a separate indicator window.

? Applications:

• Trend Confirmation: Confirms USD-related trends for macro and intermarket strategies.

• Reversal Alerts: Identifies key turning points in USD strength or weakness.

• Correlation Filter: Serves as a filter in multi-currency EAs or systems sensitive to USD flows.

This indicator offers a comprehensive and configurable approach to understanding USD dynamics in real time, ideal for discretionary traders, basket strategies, and smart filtering in expert advisors.