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Liquidity Fair Value Estimation Index Heatmap [MarktQuant]

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Liquidity Fair Value Estimation Index Heatmap [MarktQuant] Description
The Liquidity Fair Value Estimation Index Heatmap by MarktQuant is a TradingView indicator that analyzes global liquidity’s impact on asset prices, presented as a non-overlay tool. It estimates fair value based on macroeconomic liquidity data and visualizes deviations through a heatmap or Z-score display.



Core Functionality
This indicator aggregates liquidity metrics from multiple sources, including U.S. Federal Reserve data, global M2 money supply, Asian liquidity proxies, and central bank balance sheets (China, Japan, Europe), all converted to USD. It uses regression analysis to estimate the fair value of an asset’s price relative to these liquidity factors, then calculates deviations to assess over- or undervaluation.

Visual Features
  • Heatmap Mode: Displays a color-coded grid reflecting liquidity components’ bullish (green) or bearish (purple) influence.
  • Z-Score Mode: Plots a smoothed Z-score average as columns, with colors shifting from purple (undervalued) to green (overvalued).
  • Fair Value Plots: Optional overlay lines for individual liquidity sources (e.g., Fed, China), toggleable by the user.
  • Table: A bottom-center table summarizes fair values, Z-scores, signals (green/red), and optional 1/2/3-year correlations, with gradient-colored text for quick interpretation.
  • Bar Coloring: Candles can reflect the Z-score direction (purple/green).


Use Case
Ideal for traders linking macroeconomic liquidity to market pricing, this tool helps identify mispricings—undervalued assets for buying, overvalued for selling—across various timeframes.

Customization
  • Display Mode: Switch between Heatmap or Z-Score views.
  • Bars: Set the regression lookback period (default 720).
  • Z-Score Length/Smoothing: Adjust calculation period and smoothing.
  • Toggles: Enable/disable fair value plots, bar colors, and correlation data.


This indicator offers a dynamic, visually rich way to gauge how global liquidity shapes asset value, with flexible options for tailored analysis.
Notes de version
Bollinger Bands have been incorporated into the Fair Value Index to enhance market context and volatility assessment. This addition allows for improved visualization of price deviation from the perceived fair value.
Notes de version
Added option to toggle on/off the liquidity fair value bollinger bands

Clause de non-responsabilité

Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.