USD Macro Strength Index is a multi-pair, macro-level indicator designed to measure the overall strength or weakness of the US Dollar by aggregating price movements across major USD currency pairs. Instead of relying on a single chart, it analyzes the collective behavior of key USD pairs (EURUSD, USDJPY, GBPUSD, AUDUSD, USDCAD, USDCHF), applying liquidity-based weighting to produce a smooth, normalized USD strength index. The indicator plots a histogram for strength and weakness, along with an optional index line and signal line for clearer trend and momentum analysis.
The calculation compares current price levels to past prices over a defined lookback period, adjusting automatically depending on whether USD is the base or quote currency. Smoothing algorithms reduce noise, making the indicator suitable for both intraday and higher-timeframe analysis. An optional inverted display allows traders to flip the visual logic to match personal preference or strategy alignment. Built-in alerts notify traders when the USD strength line crosses its signal line, highlighting potential macro shifts.