OPEN-SOURCE SCRIPT
G8 Single Currency Rate Yield Ampel Stable
G8 Single Currency Rate/Yield Traffic Light
G8 Single Currency Rate/Yield Traffic Light is a macro-driven FX bias indicator designed to visualize whether the current interest-rate and yield environment supports a bullish, neutral, or bearish bias for a selected G8 currency.
The indicator is built around a simple but powerful macro principle:
Rising yields usually support a currency, while falling yields usually weaken it.
Rising short-rate futures usually imply lower expected policy rates and are therefore interpreted as bearish for the currency. Falling short-rate futures imply higher expected policy rates and are interpreted as bullish.
This tool is not designed as a standalone buy or sell signal. It is intended to act as a macro bias filter for FX traders who want to align their trade ideas with the current direction of rates, yields, and currency momentum.
Supported Currencies
The indicator currently supports the following G8 currencies:
USD
EUR
GBP
CHF
JPY
AUD
NZD
CAD
The selected currency can be changed directly in the settings menu.
Core Logic
The indicator calculates a score based on four possible components:
1. 2-Year Government Yield
The 2-year yield is usually very sensitive to central bank expectations.
2Y yield rising = bullish for the currency
2Y yield falling = bearish for the currency
2. 10-Year Government Yield
The 10-year yield reflects longer-term macro conditions, inflation expectations, growth expectations, and term premium.
10Y yield rising = supportive for the currency
10Y yield falling = negative for the currency
3. Short-Rate Futures
Short-rate futures are interpreted inversely.
Future price rising = lower expected rates = bearish for the currency
Future price falling = higher expected rates = bullish for the currency
Examples:
USD: SOFR future
EUR: Euribor future
GBP: short-rate / sterling rate future proxy
CAD: CORRA future proxy
CHF: SARON future proxy
AUD/NZD/JPY: rate future proxies depending on TradingView data availability
4. FX Proxy
The indicator can also include a currency proxy, such as:
DXY for USD
EURUSD for EUR
GBPUSD for GBP
AUDUSD for AUD
NZDUSD for NZD
USDCHF for CHF
USDJPY for JPY
USDCAD for CAD
For inverted pairs such as USDCHF, USDJPY, and USDCAD, the logic is automatically inverted.
Example:
USDJPY rising = JPY weakness
USDJPY falling = JPY strength
Score Interpretation
Each active module contributes either:
+1 = bullish contribution
0 = neutral / no contribution
-1 = bearish contribution
The total score is then plotted as a colored histogram.
Default interpretation:
Score >= +2 = bullish / green
Score between -1 and +1 = neutral / yellow
Score <= -2 = bearish / red
The thresholds can be adjusted in the settings.
Traffic Light Colors
Green
A green signal means that the selected currency currently has positive macro/rate momentum.
This may indicate that:
Yields are rising
Rate futures are falling
The FX proxy is confirming currency strength
In practical FX analysis, this means the selected currency may be preferred as the stronger side of a currency pair.
Yellow
A yellow signal means that the picture is mixed or neutral.
This may happen when:
Short-term yields and long-term yields disagree
Rate futures and yields send conflicting signals
The FX proxy is not confirming the rate/yield picture
In this state, traders may prefer to wait for clearer confirmation or rely more heavily on upcoming catalysts, price structure, or higher-timeframe analysis.
Red
A red signal means that the selected currency currently has negative macro/rate momentum.
This may indicate that:
Yields are falling
Rate futures are rising
The FX proxy confirms currency weakness
In practical FX analysis, this means the selected currency may be the weaker side of a currency pair.
Example Use Cases
EURUSD
If the EUR indicator is green and the USD indicator is red, this supports a EURUSD long bias.
If the EUR indicator is red and the USD indicator is green, this supports a EURUSD short bias.
If both currencies are green or both are red, the relative edge is less clear.
GBPJPY
If GBP is green and JPY is red, the macro/rate environment supports a GBPJPY long bias.
If GBP is red and JPY is green, the macro/rate environment supports a GBPJPY short bias.
AUDCAD
If AUD is green and CAD is red, the relative rate/yield picture supports AUDCAD long ideas.
If AUD is red and CAD is green, AUDCAD short ideas may be favored.
Recommended Timeframes
The indicator can be used on different timeframes depending on the trader’s style.
H1
The H1 timeframe is a good balance between responsiveness and stability. It is useful for intraday bias and short-term macro alignment.
Recommended setting:
Momentum Length: 8
H4
H4 can be used for a broader daily bias. It filters more noise and is better for traders who want fewer signal changes.
Daily
The daily timeframe can be used as a structural macro filter for swing trading and weekly FX planning.
Recommended Settings
For an H1 chart, a balanced default setup is:
Momentum Length: 8
2Y Yield: enabled
10Y Yield: enabled
Rate Future: enabled if data is available
FX Proxy: enabled
Long Threshold: +2
Short Threshold: -2
For a cleaner pure macro/rates model, the FX proxy can be disabled. In that case, the indicator focuses only on yields and short-rate futures.
Important Notes About Symbols
Some short-rate futures may not be available for every user depending on TradingView data access and exchange permissions.
If a futures symbol does not load, the indicator should still work because invalid symbols are ignored. In that case, the user can either:
disable the Rate Future module, or
manually replace the symbol in the settings with a valid TradingView symbol.
The most important components are usually the 2-year yield and short-rate future, because they are more directly linked to central bank expectations.
What This Indicator Is Designed For
This indicator is designed to help traders answer one specific question:
Does the current rate and yield environment support strength or weakness in this currency?
It can be used as part of a broader FX workflow:
1. Check macro calendar and news catalysts
2. Check the G8 currency traffic lights
3. Compare strong currencies against weak currencies
4. Build a directional bias for selected FX pairs
5. Use price action, volume profile, RSI, TSV, VWAP, or other tools for execution
The indicator is best used as a bias filter, not as a direct entry trigger.
Limitations
This indicator does not predict the future.
It does not include:
central bank speeches in real time
inflation surprises
geopolitical risk
liquidity shocks
positioning extremes
full yield curve analysis
options market structure
relative growth data
It should therefore be combined with macro context, event risk, technical structure, and proper risk management.
Disclaimer
This script is for educational and analytical purposes only. It does not provide financial advice, investment advice, or trading recommendations. All trading decisions are the responsibility of the user. Markets involve risk, and past behavior of rates, yields, or currencies does not guarantee future results.
G8 Single Currency Rate/Yield Traffic Light is a macro-driven FX bias indicator designed to visualize whether the current interest-rate and yield environment supports a bullish, neutral, or bearish bias for a selected G8 currency.
The indicator is built around a simple but powerful macro principle:
Rising yields usually support a currency, while falling yields usually weaken it.
Rising short-rate futures usually imply lower expected policy rates and are therefore interpreted as bearish for the currency. Falling short-rate futures imply higher expected policy rates and are interpreted as bullish.
This tool is not designed as a standalone buy or sell signal. It is intended to act as a macro bias filter for FX traders who want to align their trade ideas with the current direction of rates, yields, and currency momentum.
Supported Currencies
The indicator currently supports the following G8 currencies:
USD
EUR
GBP
CHF
JPY
AUD
NZD
CAD
The selected currency can be changed directly in the settings menu.
Core Logic
The indicator calculates a score based on four possible components:
1. 2-Year Government Yield
The 2-year yield is usually very sensitive to central bank expectations.
2Y yield rising = bullish for the currency
2Y yield falling = bearish for the currency
2. 10-Year Government Yield
The 10-year yield reflects longer-term macro conditions, inflation expectations, growth expectations, and term premium.
10Y yield rising = supportive for the currency
10Y yield falling = negative for the currency
3. Short-Rate Futures
Short-rate futures are interpreted inversely.
Future price rising = lower expected rates = bearish for the currency
Future price falling = higher expected rates = bullish for the currency
Examples:
USD: SOFR future
EUR: Euribor future
GBP: short-rate / sterling rate future proxy
CAD: CORRA future proxy
CHF: SARON future proxy
AUD/NZD/JPY: rate future proxies depending on TradingView data availability
4. FX Proxy
The indicator can also include a currency proxy, such as:
DXY for USD
EURUSD for EUR
GBPUSD for GBP
AUDUSD for AUD
NZDUSD for NZD
USDCHF for CHF
USDJPY for JPY
USDCAD for CAD
For inverted pairs such as USDCHF, USDJPY, and USDCAD, the logic is automatically inverted.
Example:
USDJPY rising = JPY weakness
USDJPY falling = JPY strength
Score Interpretation
Each active module contributes either:
+1 = bullish contribution
0 = neutral / no contribution
-1 = bearish contribution
The total score is then plotted as a colored histogram.
Default interpretation:
Score >= +2 = bullish / green
Score between -1 and +1 = neutral / yellow
Score <= -2 = bearish / red
The thresholds can be adjusted in the settings.
Traffic Light Colors
Green
A green signal means that the selected currency currently has positive macro/rate momentum.
This may indicate that:
Yields are rising
Rate futures are falling
The FX proxy is confirming currency strength
In practical FX analysis, this means the selected currency may be preferred as the stronger side of a currency pair.
Yellow
A yellow signal means that the picture is mixed or neutral.
This may happen when:
Short-term yields and long-term yields disagree
Rate futures and yields send conflicting signals
The FX proxy is not confirming the rate/yield picture
In this state, traders may prefer to wait for clearer confirmation or rely more heavily on upcoming catalysts, price structure, or higher-timeframe analysis.
Red
A red signal means that the selected currency currently has negative macro/rate momentum.
This may indicate that:
Yields are falling
Rate futures are rising
The FX proxy confirms currency weakness
In practical FX analysis, this means the selected currency may be the weaker side of a currency pair.
Example Use Cases
EURUSD
If the EUR indicator is green and the USD indicator is red, this supports a EURUSD long bias.
If the EUR indicator is red and the USD indicator is green, this supports a EURUSD short bias.
If both currencies are green or both are red, the relative edge is less clear.
GBPJPY
If GBP is green and JPY is red, the macro/rate environment supports a GBPJPY long bias.
If GBP is red and JPY is green, the macro/rate environment supports a GBPJPY short bias.
AUDCAD
If AUD is green and CAD is red, the relative rate/yield picture supports AUDCAD long ideas.
If AUD is red and CAD is green, AUDCAD short ideas may be favored.
Recommended Timeframes
The indicator can be used on different timeframes depending on the trader’s style.
H1
The H1 timeframe is a good balance between responsiveness and stability. It is useful for intraday bias and short-term macro alignment.
Recommended setting:
Momentum Length: 8
H4
H4 can be used for a broader daily bias. It filters more noise and is better for traders who want fewer signal changes.
Daily
The daily timeframe can be used as a structural macro filter for swing trading and weekly FX planning.
Recommended Settings
For an H1 chart, a balanced default setup is:
Momentum Length: 8
2Y Yield: enabled
10Y Yield: enabled
Rate Future: enabled if data is available
FX Proxy: enabled
Long Threshold: +2
Short Threshold: -2
For a cleaner pure macro/rates model, the FX proxy can be disabled. In that case, the indicator focuses only on yields and short-rate futures.
Important Notes About Symbols
Some short-rate futures may not be available for every user depending on TradingView data access and exchange permissions.
If a futures symbol does not load, the indicator should still work because invalid symbols are ignored. In that case, the user can either:
disable the Rate Future module, or
manually replace the symbol in the settings with a valid TradingView symbol.
The most important components are usually the 2-year yield and short-rate future, because they are more directly linked to central bank expectations.
What This Indicator Is Designed For
This indicator is designed to help traders answer one specific question:
Does the current rate and yield environment support strength or weakness in this currency?
It can be used as part of a broader FX workflow:
1. Check macro calendar and news catalysts
2. Check the G8 currency traffic lights
3. Compare strong currencies against weak currencies
4. Build a directional bias for selected FX pairs
5. Use price action, volume profile, RSI, TSV, VWAP, or other tools for execution
The indicator is best used as a bias filter, not as a direct entry trigger.
Limitations
This indicator does not predict the future.
It does not include:
central bank speeches in real time
inflation surprises
geopolitical risk
liquidity shocks
positioning extremes
full yield curve analysis
options market structure
relative growth data
It should therefore be combined with macro context, event risk, technical structure, and proper risk management.
Disclaimer
This script is for educational and analytical purposes only. It does not provide financial advice, investment advice, or trading recommendations. All trading decisions are the responsibility of the user. Markets involve risk, and past behavior of rates, yields, or currencies does not guarantee future results.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.