Currency Pair Commodity Pricing Divergence Identification Method
This is a Method to follow Currency pair and pricing divergence of a Commodity to a Base Currency
This demonstrative example is from from Gold in various currencies to Turkish Lira ₺
You can recreate this for your own purpose by following the same formulas.
Because that symbol does not exist we have to divide pairs that have a common denominator.
We will use XAUUSD (which is Gold/US Dollar) and divide it by TRYUSD (which is Lira/US Dollar)
When dividing fractions you invert the denominator and multiply.
So (XAUUSD)/(TRYUSD) = (XAUUSD)*(USDTRY)
*Note: It is important to notice that these two values produce different results in the graph, by pulling data from two different feeds.
In this Chart
XAUUSD/TRYUSD
USDTRY/XAUUSD
(RED)
Another exemplary pair is XAUCAD. It's Currency pair is TRYCAD.
So the Formula is simply
XAUCAD/TRYCAD
Also in this chart
XAUEUR/TRYEUR
XAUGBP/TRYGBP
XAUJPY/TRYJPY
XAUXCU/TRYXCU
XAUZAR/TRYZAR
(PURPLE)
Sometimes both sides of currency pairs aren't available on TradingView.
We have XAUNZD available, but we only have NZDTRY available.
To solve this we use the formula
XAUNZD/(1/NZDTRY)
Dividing by a fraction with a 1/fraction as a denominator provides us with the inverse symbol of TRYNZD
Also in this chart
XAUAUD/(1/AUDTRY)
(BLUE)
In more extreme cases, there is no currency pair available at all.
In this situation, we have to create a pairing.
There is no CNY to TRY or inverse symbol but there is XAUCNY
So, we convert the XAUCNY value to a value that has a pair.
For this example we will go back to the US Dollar before converting it to the Base Currency.
(XAUCNY/(1/CNYUSD))/TRYUSD
Also in this chart
(XAUINR/(1/INRUSD))/TRYUSD
(XAUNPR/(1/NPRUSD))/TRYUSD
(GREEN)
Forumulas with equal value are also included
XAUUSD/(1/USDTRY)
USDTRY/(1/XAUUSD)
XAUUSD*USDTRY
USDTRY*XAUUSD
This demonstrative example is from from Gold in various currencies to Turkish Lira ₺
You can recreate this for your own purpose by following the same formulas.
Because that symbol does not exist we have to divide pairs that have a common denominator.
We will use XAUUSD (which is Gold/US Dollar) and divide it by TRYUSD (which is Lira/US Dollar)
When dividing fractions you invert the denominator and multiply.
So (XAUUSD)/(TRYUSD) = (XAUUSD)*(USDTRY)
*Note: It is important to notice that these two values produce different results in the graph, by pulling data from two different feeds.
In this Chart
XAUUSD/TRYUSD
USDTRY/XAUUSD
(RED)
Another exemplary pair is XAUCAD. It's Currency pair is TRYCAD.
So the Formula is simply
XAUCAD/TRYCAD
Also in this chart
XAUEUR/TRYEUR
XAUGBP/TRYGBP
XAUJPY/TRYJPY
XAUXCU/TRYXCU
XAUZAR/TRYZAR
(PURPLE)
Sometimes both sides of currency pairs aren't available on TradingView.
We have XAUNZD available, but we only have NZDTRY available.
To solve this we use the formula
XAUNZD/(1/NZDTRY)
Dividing by a fraction with a 1/fraction as a denominator provides us with the inverse symbol of TRYNZD
Also in this chart
XAUAUD/(1/AUDTRY)
(BLUE)
In more extreme cases, there is no currency pair available at all.
In this situation, we have to create a pairing.
There is no CNY to TRY or inverse symbol but there is XAUCNY
So, we convert the XAUCNY value to a value that has a pair.
For this example we will go back to the US Dollar before converting it to the Base Currency.
(XAUCNY/(1/CNYUSD))/TRYUSD
Also in this chart
(XAUINR/(1/INRUSD))/TRYUSD
(XAUNPR/(1/NPRUSD))/TRYUSD
(GREEN)
Forumulas with equal value are also included
XAUUSD/(1/USDTRY)
USDTRY/(1/XAUUSD)
XAUUSD*USDTRY
USDTRY*XAUUSD
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.
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.