Hi peeps, does anyone here know how to calculate individual currency strength for instance like EUR, GBP, USD and any other currency? mind to tell me whats the formula...thanks ...
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How to calculate individual currency strength!
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Big Mac index! not kidding. Its called purchasing power parity or ppp
PPP Comparative Price Levels is done Monthly by the OECD
It is a long-term valuation model
maybe this forum perhaps
http://fxtrade.oanda.com/community/fxmessage/ultimatebb.cgi?ubb=print_topic;f=15;t=003257
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I think you can use a simple formula like :
C = Close of actual bar
C1 = Close of 1 back bar
((C-C1)/C1)*100
you does that for every pair of specific major and after you divide for number of pair that you summed up
exemple :
EUR =
eurusd+
eurgbp+
eurcad+
euraud+
eurnzd+
eurchf+
eurcjpy+ (naturally all this pairs are calculate with forumla of before)
---------
sum / 7
you can also look to this site :
Code:http://www.mataf.net/it/forex-charts/c-index#c_index
Last edited by Prim; 24-04-11, 18:00.
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Originally posted by Prim View PostI think you can use a simple formula like :
C = Close of actual bar
C1 = Close of 1 back bar
((C-C1)/C1)*100
you does that for every pair of specific major and after you divide for number of pair that you summed up
exemple :
EUR =
eurusd+
eurgbp+
eurcad+
euraud+
eurnzd+
eurchf+
eurcjpy+ (naturally all this pairs are calculate with forumla of before)
---------
sum / 7
you can also look to this site :
Code:http://www.mataf.net/it/forex-charts/c-index#c_index
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When you want reverse pairs you do 1/pair so exemple 1 eurusd = 1.4560 and 1 usdeur = 1/1.4560 = 0,6868 . I missing to tell you that also here is avaible a table of percent change :
Code:http://www.actionforex.com/markets/data/forex-top-movers-2007123134103/
Last edited by Prim; 24-04-11, 21:44.
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