OPEN-SOURCE SCRIPT
Relative PPP for USDBRL
This indicator calculates the USDBRL exchange rate using the Relative Purchasing Power Parity method, which considers that the variation in the exchange rate is equal to the variation in inflation in Brazil minus the variation in inflation in the US. It is derived from the Law of One Price, which states that an identical good should have the same price in different markets when adjusted for exchange rates, assuming the absence of arbitrage barriers such as transaction costs or trade restrictions.
The indicator is calculated starting from June 1994, at the launch of the Real Plan, which equalized the value of the Brazilian Real and the US Dollar at that time. This indicator is useful for providing an idea of the long-term trend of the Dollar exchange rate (months or years), acting similarly to a moving average, around which the exchange rate gravitates.
It's useful for analysts who have to forecast the USDBRL in the long term.
The indicator is calculated starting from June 1994, at the launch of the Real Plan, which equalized the value of the Brazilian Real and the US Dollar at that time. This indicator is useful for providing an idea of the long-term trend of the Dollar exchange rate (months or years), acting similarly to a moving average, around which the exchange rate gravitates.
It's useful for analysts who have to forecast the USDBRL in the long term.
Script open-source
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.
For quick access on a chart, add this script to your favorites — learn more here.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Script open-source
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.
For quick access on a chart, add this script to your favorites — learn more here.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.