Theory Of Economic Cycle

Forex Metrics Currency Index is a Global Currency Index created by ForexMetrics.com

Click on the Titles below to read more about Forex Metrics Currency Index.

* "Forex Metrics CURRENCY INDEX" AND FUNDAMENTAL ECONOMICS

* ABOUT "Forex Metrics CURRENCY INDEX"

* HOW TO READ "Forex Metrics CURRENCY INDEX"

* HOW TO READ "CONTINUOUS MOVING AVERAGE"

* TradeVestment Performance
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How to read Forex Metrics Currency Index and Continuous Moving Average

How to read Forex Metrics Currency Index and Continuous Moving Average

• Forex Metrics Currency Index quantifies fundamental changes in individual economy as well as global economy by measuring the changes in relative currencies value through individual currency Index.

• Forex Metrics Currency Index represents Value of single global currency or Reserve Currency.

• Forex Metrics Currency Index upward movement indicates a positive fundamental outlook of global economic growth.

• Upward movement in Individual currency basket / index indicates a positive outlook of that particular economy.

• Forex Metrics Currency Index downward movement indicates a negative fundamental outlook of global economic growth.

• Downward movement in Individual currency basket / index indicates a positive outlook of that particular economy.

• Continuous Moving Average (CMA) of Forex Metrics Currency Index is a long term average that signifies long term fundamental outlook.

• FMCI greater than CMA Global economic outlook is Positive.

• FMCI less than CMA Global economic outlook is Negative.

• When FMCI crosses CMA, it signifies a fundamental change of trend.

• Difference between FMCI and CMA signifies intensity of boom or burst in global economic scenario.

• Higher the difference, higher the volatility in value of currencies and economic uncertainty.

• Small difference indicates stability in global economics and value of currencies.

• If CMA is greater than FMCI: Increasing difference between CMA and FMCI signifies severity in net global economic growth and recession/deflationary pressure.

• If CMA is greater than FMCI: Decreasing difference between CMA and FMCI signifies net global economic recovery and easing of recessionary/deflationary pressure.

• If CMA is less than FMCI: Increasing difference between CMA and FMCI signifies boom in net global economic growth and rising inflationary pressure.

• If CMA is less than FMCI: Decreasing difference between CMA and FMCI signifies stabilizing net global economic growth and easing inflationary pressure.

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How to read FMCI Currency Basket?

Forex Metrics Currency Index is based on 10 Major convertible currencies and it is an average of 10 currency indices.

• If CMA of a currency Basket is less than FMCI: Currency is Bullish.

• If CMA of a currency basket is greater than FMCI of basket: Currency basket is Bearish.

• If individual currency index is above its CMA, while CMA of FMCI is Negative, that particular currency index is read as bullish.

• If individual currency index is above its CMA, while CMA of FMCI is Positive, that particular currency index is read as relatively bullish.

• If individual currency index is below its CMA, while CMA of FMCI is Positive, that particular currency index is read as bearish.

• If individual currency index is below its CMA, while CMA of FMCI is Negative, that particular currency index is read as relatively bearish.
  
  
• Crossover of CMA over FMCI is change of trend of that particular basket.

Forex Metrics Currency Index is useful for Forex Trading Strategy - TradeVestment
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