BlackGold Indicator - oil and the ruble, lifting the veil

Good time of day, fellow forex traders! We all know that when oil gets cheaper, the dollar rises against the ruble. The price of oil falls, but since oil is priced in dollars, the Russian government receives the same amount in rubles as it did when oil prices were higher. After all, now they give more rubles for a dollar.

You can lament and curse the authorities for a long time, or you can make money from it. Which is what we will do with the indicator BlackGold, which will show you oil prices and the ruble exchange rate from an unexpected angle.

Platform: Metatrader 4
Currency pairs: USDRUB, oil
Timeframe: any
Trading time: depends on your strategy
Recommended brokers: Alpari, GKFX

The BlackGold indicator is installed in the terminal according to the standard instructions.

It should be attached to the oil chart (with different brokers it may be called differently). In the settings, specify the name of the dollar/ruble pair if your broker calls it something other than USDRUB (set by default).

The budget of the Russian Federation is built a year ahead, based on a certain oil price. Oil gets cheaper in dollar terms, what happens to the ruble? Correct, it gets cheaper too. But at the same time, since the state sells oil in dollars, the number of rubles received for a barrel of oil does not change much. That is, the price of oil in rubles is not as strongly subject to changes as the price of oil in dollars.

From this, we can conclude that the price of oil in rubles has fluctuated around certain average values in recent years, and any noticeable deviation up or down is corrected.

What can we do with this? Trade oversold and overbought conditions of oil in ruble terms, and also extract profit from the divergence of oil charts in rubles and in dollars. But for this we will need a Brent/RUB chart, which we will build using the BlackGold indicator under review.

The BlackGold indicator is based on a very interesting idea. You do not immediately grasp it clearly, so I advise you to think for a couple of minutes and reread this short review once again. What to do with this finding is up to you. But do not forget that an indicator is only an indicator, you will have to build the strategy yourself.

Respectfully, Pavel Vlasov TradeLikeaPro.ru