Questions about BVQ Matrix


I read that the BVQ quote value has changed directions to make it more intuitive. But I don't quite understand, so I was hoping you can explain.

In the currency matrix attached, the USD and JPY are pointed to the ground. In the BVQ Matrix, USD is pointed down and JPY is pointed up.

If you look at the chart, there is no price movement, which means the currency matrix is right, because when both quote and base are going same direction on currency matrix, there is usually no price action.

So how do I read and understand and use the BVQ base and quote values?




Staff member
Yeah, this confuses folks a bit. Let me try to explain using your example. For the USDJPY, if the USD "loses value" the pair will go short/down. For the USDJPY, if the JPY 'loses value" the pair will go long/up. Picture a teeter tooter that kids play on. When one side goes up, the other does down and vise versa. The Quote side of a pair is always opposite from the direction of the Currency Matrix, so we inverted the Quote side values on the BVQ Matrix to try to make it easier to understand how the "currency" trend value is affecting the "currency pair" trend value.

Even though the USD and the JPY are both short/down values, the USDJPY will not go "short/down". It will actually go sideways. That's why the "Average" value on the BVQ is low. The pairs that get more confusing are where the "currency" changes positions based on the pair like the "USD". In this example: the USD is losing value (going short) - this will push "down" on the USDJPY, USDCAD, and USDCHF, but push "up" on the EURUSD, GBPUSD, and AUDUSD (and NZDUSD).

Let me know if that helps. And if you can think of a better way to explain this, PLEASE let me know. I want to help folks understand.