Gold vs USD Strength Oscillator THE FIRST IN THE WORLD 🔶 Gold vs USD Strength Oscillator
Institutional Cross-Market Strength Model
This tool measures the relative internal strength of Gold versus the U.S. Dollar using a composite currency framework rather than a single USD pair.
Instead of relying on DXY alone, it builds a custom-weighted USD strength index from the major currency flows that actually move the dollar.
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🧠 What It Actually Does
1️⃣ Builds a Real USD Strength Model (Composite Index)
The script pulls live price data from:
• EURUSD
• USDJPY
• GBPUSD
• USDCAD
• AUDUSD
• USDCHF
• NZDUSD
Each pair is weighted institutionally:
• EUR (30%)
• JPY (20%)
• GBP (15%)
• CAD (10%)
• AUD (10%)
• CHF (7.5%)
• NZD (7.5%)
Pairs quoted as XXXUSD are inverted internally so USD strength increases correctly when those pairs fall.
This creates a synthetic USD index that reflects true global dollar demand — not just one futures contract.
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2️⃣ Converts Raw Price Into Strength Momentum
Both:
• The composite USD index
• Gold (XAUUSD)
are transformed into momentum strength curves using a smoothing algorithm over your selected Strength Length (default 21).
This normalizes price movement into a clean 0–100 strength scale.
Result:
• Black Line → Gold Strength
• Lime Line → USD Composite Strength
You are no longer watching price.
You are watching momentum dominance flow.
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3️⃣ The Cross Logic (Quant Momentum Trigger)
Signals are not random.
They are generated when Gold Strength crosses the USD Strength curve.
• BUY → Gold strength crosses ABOVE USD strength
• SELL → Gold strength crosses BELOW USD strength
This is a relative strength momentum shift, not a price crossover.
And by default, signals confirm only on candle close to eliminate noise.
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📊 What the Levels Mean
• 50 → Equilibrium (neutral dominance zone)
• 66 → Expansion / Overextension zone
• 34 → Compression / Exhaustion zone
These levels help identify:
• Momentum acceleration
• Potential overbought conditions
• Potential oversold conditions
• Cross-market imbalance extremes
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🎯 Why This Is Powerful
Most traders watch Gold price alone.
Institutions watch:
• Gold
• Dollar liquidity
• Cross-currency demand
• Global macro flow
This indicator replicates that concept in one pane.
Instead of guessing direction, you see:
• When gold is internally gaining strength
• When dollar demand is overpowering
• When momentum shifts are occurring
• When divergence between the two begins
It’s essentially a flow battle monitor between real assets and reserve currency pressure.
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🏛 Institutional & Quant Angle
Under the hood:
• Multi-asset composite modeling
• Weighted currency exposure
• Momentum normalization
• Relative dominance crossover logic
• Confirmation filtering on close
• Zero lookahead bias
This makes it:
• Broker neutral
• Timeframe adaptive
• Non-repainting
• Cross-market aware
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🧩 Who This Is For
• Gold scalpers
• Intraday momentum traders
• Swing traders tracking USD flow
• Macro traders monitoring dollar rotation
• Anyone trading XAUUSD seriously
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🏁 In Simple Terms
This tool shows:
“Who is stronger right now — Gold or the Dollar?”
And it tells you when that strength flips.
Indicador Pine Script®






















