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USD GAP RATIO (USD/KRW vs DXY)

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USDKRW

This custom indicator measures the relative value of the USD/KRW exchange rate against the global US Dollar Index (DXY) to identify premium and discount zones.

By dividing DXY by USD/KRW, it captures structural anomalies where the Korean Won becomes temporarily overvalued despite strong global dollar sentiment. It utilizes a 240-day Simple Moving Average (SMA) as a baseline to signal mean-reversion trading opportunities.

Long Entry (Buy Signal):"When the blue Gap Ratio line spikes significantly above the gray dashed line (240 SMA), it indicates that USD/KRW is deeply undervalued relative to the global dollar. This signals a high-probability quarterly bottom for a long position."

Exit / Avoid Long:"When the blue line drops well below the 240 SMA, the currency pair is overvalued (premium zone). Avoid entering new long positions."


  • Formula: Gap Ratio = (DXY / USD_KRW) * 100,000
  • Baseline: 240-period Simple Moving Average (SMA) of the Gap Ratio
  • Category: Macro Spread / Trend & Mean-Reversion Indicator
  • Recommended Timeframe: Daily (D) or 4-Hour (4H) for swing trading

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