Half Candle RetraceThis custom indicator draws a horizontal line at the 50% retracement level of each candlestick on the chart. It calculates the midpoint between the high and low of each candle, which is often used by traders to identify potential entry, exit and take-profit levels. Once price action returns to an untouched level, the line will be removed, leaving only the levels where price action is still missing.
Key Features:
Timeframe: Works on all timeframes.
Line Color: Customize the line color to suit your charting preferences.
Line Width: Adjust the thickness of the retracement line for better visibility.
Line Style: Choose between solid, dotted, or dashed lines.
Up/Down Candle Selection: Option to only display retracement lines for up (bullish) candles, down (bearish) candles, or both.
Full Customization: Control the transparency (opacity) of the line for enhanced visual clarity.
Simple Setup: No complicated settings – simply choose your preferred color, line style, and visibility options.
This indicator is perfect for traders who prefer to use price action and retracement levels to identify potential trade opportunities.
How It Works:
The indicator automatically calculates the 50% level (midpoint) for each candlestick, drawing a line at this level. It will only draw lines for candles that match your chosen criteria (up or down candles), ensuring the chart remains clean and relevant to your trading strategy. Lines are automatically removed as soon as price crosses them.
Indicateurs et stratégies
star₿oy ⋆𓆩₿𓆪⋆ code🚀 star₿oy ⋆𓆩₿𓆪⋆ code 📊
The Ultimate Trading Overlay for Smart Market Insights
🔹 What does this script offer?
✔️ Company Name & Market Cap – Automatically formatted (T/B units)
✔️ Industry & Sector Information – Know what sector your stock belongs to
✔️ Trend Indicator – Identifies if the stock is in an Uptrend 🚀 or Downtrend 📉
✔️ ATR (14) with Alerts – Includes percentage and color-coded risk levels 🔴🟡🟢
✔️ SMA Distance Tracking – Calculates the distance from SMA 150, 50, and 20 for better positioning 📈
🔍 Why Use This?
📌 Saves time by showing key metrics directly on your chart
📌 Helps identify strong trends and potential reversal zones
📌 Perfect for both day traders and long-term investors
🛠 How to Use:
1️⃣ Add the script to your TradingView chart
2️⃣ Adjust the settings as needed
3️⃣ Make better-informed trading decisions!
🔥 Upgrade your trading experience with star₿oy! 🔥
Feel free to copy and paste this into your script description. Let me know if you want any modifications! 🚀📈
Volume Indicator - CryptoMittalFind ultra high and low volumes to decide a better trade opportunities by knowing where the smart money is getting in.
AI-Based Quotex OTC Signal v2 (Updated for Pine Script v6)This advanced Pine Script is designed for 1-minute binary options trading. It generates non-repainting CALL and PUT signals using a combination of RSI, ATR, moving averages, and volume filters. The script avoids choppy markets and adapts to changing conditions, ensuring high-quality signals with minimal false alerts. Perfect for traders looking for a reliable and adaptive strategy.
CryptoCipher FreeCryptoCipher Free (CCF) – Advanced Momentum and Divergence Indicator
CryptoCipher Free (CCF) is a powerful multi-tool for crypto traders, designed to combine several key technical indicators into one comprehensive package. It helps identify potential market turning points by detecting momentum shifts, divergences, and money flow direction. This tool offers a user-friendly visual approach with fully customizable settings.
Features:
WaveTrend Oscillator (WT): Tracks momentum and overbought/oversold conditions.
Trigger Waves: Smaller momentum waves indicating possible trend reversals.
Bullish & Bearish Divergence Detection:
Uses WaveTrend lines to spot divergences in momentum—labels are plotted directly on the oscillator with the price value where the divergence occurred.
Customizable Divergence Threshold (Default: 30, adjustable from 20–45):
Lower thresholds provide more frequent signals but may increase noise.
Higher thresholds deliver stronger, more reliable signals for larger market moves.
Money Flow Index (MFI) with Market Cipher-style visual waves:
Green Areas = Positive Money Flow (Capital inflows).
Red Areas = Negative Money Flow (Capital outflows).
VWAP (Volume-Weighted Average Price): Normalized and plotted as an oscillator for better mean-reversion signals.
RSI & Stochastic RSI: Dynamically colored RSI and Stoch RSI plotted with horizontal thresholds for quick overbought/oversold identification.
Fully Customizable:
Colors and Styles: Easily adjustable to match your preferred visual style.
Inputs for Sensitivity Control: Tune settings like WaveTrend length, VWAP length, and divergence thresholds to match different assets or timeframes.
How to Use:
Short-Term Traders: Lower the divergence threshold (20–30) for more frequent signals.
Swing Traders: Stick to 30 or higher for more reliable trend-reversal detection.
High Timeframes (Daily/Weekly): Use a higher threshold (e.g., 45) to capture only major market divergences.
Disclaimer:
This tool is designed for educational and informational purposes only. Past performance is not indicative of future results. Use it alongside other tools for confirmation and always apply risk management.
Power Law Below is a detailed, line-by-line explanation in English of the Pine Script (TradingView) code. It uses Pine Script v6 syntax.
---
```pine
//@version=6
indicator("Power Law", overlay=true)
```
1. `//@version=6`
- Declares that this script uses Pine Script version 6. It must appear on the very first line.
2. `indicator("Power Law", overlay=true)`
- Defines this script as an indicator named **"Power Law"**.
- `overlay=true` means this indicator is plotted on the main chart (the price chart) rather than in a separate pane.
---
```pine
// Days X-Axis Value
start = time == timestamp(2010, 7, 18, 0, 0)
days = request.security("INDEX:BTCUSD", 'D', ta.barssince(start))
offset = 561 // days between 2009/1/1 and "start"
d = days + offset
```
1. `start = time == timestamp(2010, 7, 18, 0, 0)`
- Checks if the current bar’s `time` equals July 18, 2010 at 00:00. This returns a boolean value (`true` or `false`).
- It’s mainly used together with `ta.barssince(start)` to calculate the number of bars elapsed since this “start” date.
2. `days = request.security("INDEX:BTCUSD", 'D', ta.barssince(start))`
- `request.security()` lets the script request data from another symbol or another timeframe—in this case, `"INDEX:BTCUSD"` on the Daily (`'D'`) timeframe.
- The third argument, `ta.barssince(start)`, is a built-in function in Pine that counts how many bars have passed since `start` was `true`. In this script, it effectively measures how many daily bars have elapsed since July 18, 2010.
- The result is assigned to `days`, indicating “the count of daily bars between July 18, 2010 and the most recent daily bar in the BTC index.”
3. `offset = 561`
- A user-defined number. The comment states it’s the number of days between January 1, 2009, and the “start” date (July 18, 2010). It is used to calibrate or shift the day count.
4. `d = days + offset`
- Adds the offset to `days`, giving a final day-count-like value (`d`) that the script uses later in the power-law calculations.
---
```pine
a = input(-17.668, "Power Law Intercept", group="Power Law Settings")
b = input(5.926, "Power Law Slope", group="Power Law Settings")
```
- These lines define two adjustable parameters `a` and `b` using `input()`, making them editable via the indicator’s settings.
- `a` (the intercept) is labeled “Power Law Intercept.”
- `b` (the slope) is labeled “Power Law Slope.”
- `group="Power Law Settings"` puts them into a named group in the settings dialog.
---
```pine
price_power_law_0 = math.pow(10, a + b*math.log10(d))
price_power_law_1 = math.pow(10, a + b*math.log10(d + 1*365))
price_power_law_2 = math.pow(10, a + b*math.log10(d + 2*365))
price_power_law_3 = math.pow(10, a + b*math.log10(d + 3*365))
price_power_law_4 = math.pow(10, a + b*math.log10(d + 4*365))
price_power_law_5 = math.pow(10, a + b*math.log10(d + 5*365))
```
- These lines each calculate a “power law” price value:
\
- `d` is the base day count.
- `math.log10(...)` takes the base-10 logarithm.
- `a` is the intercept; `b` is the slope in the power-law model.
- Adding `(1*365), (2*365), ...` to `d` suggests forecasts or curves 1 year, 2 years, etc. beyond the baseline.
- `math.pow(10, ... )` is simply 10 raised to the power of `(a + b * log10(...))`.
---
```pine
// Use a valid 6-digit color code (e.g. #FFFFAA) or 8-digit (e.g. #FFFFAA80)
p0 = plot(price_power_law_0, color=#FFFFAA, title="Power Law", linewidth=1)
p1 = plot(price_power_law_1, title="Power Law 1", linewidth=1, color=bar_index % 2 == 0 ? #FFFFAA : #000000)
p2 = plot(price_power_law_2, title="Power Law 2", linewidth=1, color=bar_index % 2 == 0 ? #FFFFAA : #000000)
p3 = plot(price_power_law_3, title="Power Law 3", linewidth=1, color=bar_index % 2 == 0 ? #FFFFAA : #000000)
p4 = plot(price_power_law_4, title="Power Law 4", linewidth=1, color=bar_index % 2 == 0 ? #FFFFAA : #000000)
p5 = plot(price_power_law_5, title="Power Law 5", linewidth=1, color=bar_index % 2 == 0 ? #FFFFAA : #000000)
```
1. The script plots six lines (from `price_power_law_0` to `price_power_law_5`).
2. `color=#FFFFAA`
- A 6-digit hex color (`#RRGGBB`) that sets the line’s color.
3. `color=bar_index % 2 == 0 ? #FFFFAA : #000000`
- A conditional color assignment: if `bar_index % 2 == 0`, the color is `#FFFFAA`, otherwise it is `#000000`. This makes line colors alternate depending on the bar index.
4. `linewidth=1` sets the thickness of each line.
5. `title="Power Law X"` sets each line’s label in the chart’s legend.
---
## How It Works
- The script calculates how many daily bars have passed since July 18, 2010 (plus a manual offset of 561 days).
- It then applies a power-law formula for various offsets (`+ 1*365`, etc.), each representing a different curve.
- Finally, it plots these six curves on the main chart, showing potential price trajectories or “power-law” relationships for Bitcoin’s historical data (taken from `"INDEX:BTCUSD"` on a daily timeframe).
## Important Notes
1. **Color Codes**
- Must be valid 6-digit or 8-digit hex codes (e.g. `#FFFFAA` or `#FFFFAA80`). Otherwise, you’ll get a syntax error.
2. **`request.security()`**
- Fetching data from `"INDEX:BTCUSD"` on a daily timeframe. If your chart is on another symbol or timeframe, the script still references the daily bars from that index, which can lead to alignment differences.
3. **Logarithms**
- Make sure `d` (or `d + n*365`) never becomes zero or negative, otherwise `math.log10()` will fail. If your script tries to log10(0) or a negative number, you’ll get an error.
4. **Conceptual Use**
- This script’s logic is specific to modeling Bitcoin’s price over time using a power-law approach. You can change the `start` date, the offset, or the intercept/slope inputs to adapt the script for different data sources or fitting strategies.
---
**In summary,** this script draws several power-law curves on the chart based on a reference date (July 18, 2010) and an offset, presumably chosen to align with Bitcoin’s historical timeline. By adjusting `a` (the intercept) and `b` (the slope), you can fine-tune how these curves fit the historical data.
ATR Trailing Stoploss with VWAPplot vwap lin and ATR line too, even though we don't use atr in the logic. atr code is given below. make it a strategy.
Above VWAP: If the price stays above VWAP, it signals a bullish trend → Look for long entries.
Below VWAP: If the price stays below VWAP, it signals a bearish trend → Look for short entries.
Long Entry (Price Crossing VWAP Upward)
If the price crosses above VWAP with strong volume (CDV rising), it may indicate a trend reversal → Enter a long position.
BTC Smart Volume Confirmation Btc Market Stats Panel Introduction I've created a script that brings TradingView's watchlist stats panel functionality directly to your charts. This isn't just another performance indicator - it's a
EMA & SMA IndicatorThis indicator displays Exponential Moving Averages (EMA) and a Simple Moving Average (SMA) to help analyze market trends.
Features:
✅ EMA 9, 21, 50, 200 – show short-term, mid-term, and long-term trends.
✅ SMA 9 – an additional filter for short-term analysis.
✅ Labels on the last candle – makes it easy to identify moving average levels without cluttering the chart.
✅ Clear color coding – distinct lines that enhance visualization without distractions.
🔹 How to Use:
Works for all markets (Forex, Stocks, Crypto, etc.).
EMA 9 & 21 help identify short-term entry and exit points.
EMA 50 & 200 provide insights into the overall market trend.
SMA 9 serves as a confirmation tool.
This indicator is designed to improve market analysis and help traders make informed decisions! 🚀
3 Min Chart with 15 Min ST & SMAThis indicator combines multiple technical analysis tools on a 3-minute chart to provide potential trading signals. It displays:
* **15-Minute Supertrend (ST):** Two Supertrend indicators are plotted - one calculated on the 3-minute chart itself, and another calculated on the 15-minute chart. The 15-minute Supertrend is displayed on the 3-minute chart using `request.security` to provide a broader trend context. Supertrend helps identify potential trend reversals or continuations.
* **15-Period Simple Moving Average (SMA):** A 15-period SMA is plotted to visualize the average closing price over the last 15 periods.
* **200-Period Exponential Moving Average (EMA):** A 200-period EMA is plotted to identify the long-term trend.
* **Trading Signal:** The indicator generates a simple trading signal based on the confluence of the Supertrend and SMA:
* **Buy on Dip:** Occurs when the 3-minute Supertrend is bullish, the 15-minute Supertrend is bullish, and the price is above the 15 SMA.
* **Sell on Rise:** Occurs when the 3-minute Supertrend is bearish, the 15-minute Supertrend is bearish, and the price is below the 15 SMA.
* **Neutral:** Occurs when the above conditions aren't met.
* **Table Display:** A table summarizes the current status of:
* The 3-minute Supertrend
* The 15-minute Supertrend
* Price relative to the 15 SMA.
* **Candle Body Percentage:** The indicator uses candle body percentage to refine the signals and only generates signals when the candle's body is greater than 40%.
* **Higher High/Higher Low:** The indicator identifies Higher High/Lower Low patterns to potentially enhance signal reliability.
**How to Use:**
* Use the signals as potential entry points.
* Consider other indicators and market analysis to confirm signals.
* Use the table to quickly assess the key trend and signal components.
* Backtest the indicator on historical data to determine optimal parameters for your trading style.
**Important Considerations:**
* This indicator is a tool and does not guarantee profits.
* Market conditions can change, and signals may become inaccurate.
* Always use risk management techniques (stop-loss orders, position sizing).
* Optimize the parameters (e.g., Supertrend factors, SMA length) to suit the specific asset you are trading and your trading timeframe.
TradFi Fundamentals: Momentum Trading with Macroeconomic DataIntroduction
This indicator combines traditional price momentum with key macroeconomic data. By retrieving GDP, inflation, unemployment, and interest rates using security calls, the script automatically adapts to the latest economic data. The goal is to blend technical analysis with fundamental insights to generate a more robust momentum signal.
Original Research Paper by Mohit Apte, B. Tech Scholar, Department of Computer Science and Engineering, COEP Technological University, Pune, India
Link to paper
Explanation
Price Momentum Calculation:
The indicator computes price momentum as the percentage change in price over a configurable lookback period (default is 50 days). This raw momentum is then normalized using a rolling simple moving average and standard deviation over a defined period (default 200 days) to ensure comparability with the economic indicators.
Fetching and Normalizing Economic Data:
Instead of manually inputting economic values, the script uses TradingView’s security function to retrieve:
GDP from ticker "GDP"
Inflation (CPI) from ticker "USCCPI"
Unemployment rate from ticker "UNRATE"
Interest rates from ticker "USINTR"
Each series is normalized over a configurable normalization period (default 200 days) by subtracting its moving average and dividing by its standard deviation. This standardization converts each economic indicator into a z-score for direct integration into the momentum score.
Combined Momentum Score:
The normalized price momentum and economic indicators are each multiplied by user-defined weights (default: 50% price momentum, 20% GDP, and 10% each for inflation, unemployment, and interest rates). The weighted components are then summed to form a comprehensive momentum score. A horizontal zero line is plotted for reference.
Trading Signals:
Buy signals are generated when the combined momentum score crosses above zero, and sell signals occur when it crosses below zero. Visual markers are added to the chart to assist with trade timing, and alert conditions are provided for automated notifications.
Settings
Price Momentum Lookback: Defines the period (in days) used to compute the raw price momentum.
Normalization Period for Price Momentum: Sets the window over which the price momentum is normalized.
Normalization Period for Economic Data: Sets the window over which each macroeconomic series is normalized.
Weights: Adjust the influence of each component (price momentum, GDP, inflation, unemployment, and interest rate) on the overall momentum score.
Conclusion
This implementation leverages TradingView’s economic data feeds to integrate real-time macroeconomic data into a momentum trading strategy. By normalizing and weighting both technical and economic inputs, the indicator offers traders a more holistic view of market conditions. The enhanced momentum signal provides additional context to traditional momentum analysis, potentially leading to more informed trading decisions and improved risk management.
The next script I release will be an improved version of this that I have added my own flavor to, improving the signals.
Smooth Candles (Less Noise)smoothed candles for great and fast entry with tight stops, use with rsi and macd to confirm the entries to be more high probablity trades.
Heikin Horizon v7Heikin Horizon v7 – User Guide and Instructions
Heikin Horizon v7 is a multi-faceted tool designed to help you analyze market trends using Heikin-Ashi candles across multiple timeframes, detect various price patterns, and backtest your trading strategies. The following guide will walk you through setting up and using the indicator:
1. Initial Setup & Feature Unlocking
Access Control:
If required, enter the designated access phrase to unlock all features.
Once unlocked, you can access advanced settings and visual outputs.
Basic Configuration:
In the indicator’s input panel, configure your preferred settings for Heikin-Ashi analysis, including the primary parameters for your chart.
2. Pattern Analysis Configuration
Pattern Selection:
Choose from a list of predefined patterns (e.g., Bullish, Bearish, Consolidation) or define your own custom pattern.
The indicator automatically detects and labels these patterns as they occur.
Timeframe Settings:
Set separate timeframes for short-term and long-term pattern detection.
These settings allow the indicator to analyze trends over different periods for a comprehensive view.
Pattern Table Display:
Enable the Pattern Table to view detailed metrics about detected patterns, such as:
Current trend direction
Frequency of occurrence
Win rate and conversion rates
You can position this table anywhere on your chart (Top Left, Top Center, etc.) via the settings.
3. Multi-Timeframe Trend Analysis
Trend Overview:
The indicator aggregates Heikin-Ashi trends from several timeframes—from seconds to daily intervals.
Each timeframe is represented with its own color coding (e.g., green for bullish, red for bearish) for easy recognition.
Visual Table Options:
Enable and position the Multi-Timeframe Analysis Table to quickly assess the overall market trend.
This table aids in understanding how short-term trends align with longer-term market behavior.
4. Backtesting and Trade Statistics
Backtest Setup:
Configure key parameters such as trade duration, sample size, take profit, and stop loss levels.
Adjust thresholds for expected move and win rate to filter out less significant trades.
Performance Tables and Graphs:
Enable the Backtest Table and/or Graph to review:
Total trades taken
Win rate (percentage of winning trades)
Average win and loss sizes
Profit factor and final balance estimates
These visual and numerical outputs help you gauge the historical performance of your strategy.
5. Outcome and Historical Performance Analysis
Outcome Breakdown:
Enable the Outcomes Table to see a detailed breakdown of each potential price move outcome.
Metrics include count, average candle body size, and expected price changes for different outcomes.
Historical Data Table:
The History Table offers a bar-by-bar analysis showing expected versus actual high, low, and closing values.
Use this table to review how patterns performed historically and to adjust your strategy accordingly.
6. Visual Enhancements & Alert Configuration
Candle Coloring:
Optionally enable candle coloring to highlight candles that match your selected pattern.
This feature provides immediate visual feedback on pattern occurrences.
Alert Setup:
Configure alerts to notify you when specific patterns are detected or when certain timeframe conditions are met.
Alerts are based on both pattern triggers and defined timeframe conditions, ensuring you are informed in real time.
7. Customization and Final Adjustments
Table Positioning:
You can choose the placement of all tables (Pattern, Previous Trends, Timeframe Analysis, Outcomes, Backtest, History) directly from the settings.
Adjust these positions to create a layout that best fits your chart and workflow.
Interpreting the Data:
Use the statistics provided (e.g., win rate, expected move, average candle sizes) to help determine entry and exit points.
Review backtesting results to validate and refine your trading strategies.
Experiment and Refine:
The indicator’s flexibility allows you to experiment with various settings to find the best configuration for your trading style.
Continuously adjust parameters as market conditions change to maintain optimal performance.
Engulfing Alert (for the H1 Engulfing Strat)A basic indicator to mark candles that meet the engulfing parameters talked about in the NQ H1 Engulfing strategy video by Keypoems. These parameters aren't the typical engulfing parameters, hence this specialized indicator.
You can also use this indicator to create alerts for when these engulfing candles appear. Then when you get the alert, get ready for a trade entry!
ORB-5Min + Adaptive 12/48 EMA + PDH/PDLThis script integrates three powerful elements into a handy all-in-one tool for intraday trading: a 5-minute opening range (ORB) to highlight potential early support/resistance, color-coded EMAs (9, 12, 48, and 200) to gauge short- and long-term momentum, and the previous day’s high/low to mark key pivot points.
By visually emphasizing the ORB zone, adapting EMA colors based on price action, and displaying PDH/PDL, it helps day traders quickly spot breakout opportunities, momentum shifts, and critical support/resistance levels.
For the best results, use it on intraday charts and combine its insights with your broader market analysis or price action strategies.
Be sure to customize the settings—such as toggling the ORB lines, adjusting fill opacity, or choosing EMA colors—to match your trading style. This all-in-one solution saves chart space while providing essential reference points in one convenient script.
Combined RSI, Stochastic, and CCI Strategy by DiGet Combines RSI, Stochastic, and CCI Strategy with each one
RSI + Fibonacci + Price Action Buy/Sell🔹 Strategy Logic
1. Buy Conditions (Long Entry)
✅ RSI is below 30 (oversold) and crossing up.
✅ Price is near 50% or 61.8% Fibonacci retracement (strong support).
✅ Price action confirmation: Bullish engulfing, hammer, or breakout of resistance.
✅ Entry Level: Current close price when buy conditions trigger.
✅ Stop Loss (SL): Below the 100% Fibonacci retracement level or last swing low.
✅ Targets:
🎯 Target 1 (1:2 RR) = Entry + (Entry - SL) * 2
🎯 Target 2 (1:3 RR) = Entry + (Entry - SL) * 3
2. Sell Conditions (Short Entry)
✅ RSI is above 70 (overbought) and crossing down.
✅ Price is near 38.2% Fibonacci retracement (strong resistance).
✅ Price action confirmation: Bearish engulfing, shooting star, or breakdown of support.
✅ Entry Level: Current close price when sell conditions trigger.
✅ Stop Loss (SL): Above the 0% Fibonacci retracement level or last swing high.
✅ Targets:
🎯 Target 1 (1:2 RR) = Entry - (SL - Entry) * 2
🎯 Target 2 (1:3 RR) = Entry - (SL - Entry) * 3
📌 How This Works
✅ Combines RSI, Fibonacci, and Price Action for Stronger Confirmation.
✅ Uses Candlestick Patterns (Engulfing, Hammer, Shooting Star) for Entry.
✅ Plots Entry, Stop Loss, and Targets (1:2 & 1:3 RR).
✅ Triggers Alerts When a Buy/Sell Signal is Confirmed.
🚀 How to Use:
1️⃣ Apply this script to Nifty (or any stock/crypto) chart in TradingView.
2️⃣ Works best on 15m, 1H, or daily timeframes.
3️⃣ Confirm with trendlines, volume, and market structure.
4️⃣ Adjust lookback period based on volatility.
Price-Aligned Trend IndicatorPrice-Aligned Trend IndicatoPrice-Aligned Trend IndicatoPrice-Aligned Trend IndicatoPrice-Aligned Trend Indicato
3Time ZonesUso de 3 Zonas de tiempos a la vez para customizar. Predeterminadamente trae la división diaria, zona de operativa de New York y como 3ra los horarios de manipulaciones del mercado en NY 👍✌️
NYSE VOLD Ratio HistogramThe NYSE VOLD Ratio Histogram is a market breadth indicator that measures the strength of advancing vs. declining volume on the New York Stock Exchange (NYSE). It helps traders identify shifts in buying and selling pressure by visualizing the VOLD Ratio as a color-coded histogram.
Global Liquidity Index - Selectable (Indicator) by FlickyScript attained from Flicky on Erik Krown's Crypto Cave
The Global Liquidity Index offers a consolidated view of all major central bank balance sheets from around the world. For consistency and ease of comparison, all values are converted to USD using their relevant forex rates and are expressed in trillions. The indicator incorporates specific US accounts such as the Treasury General Account (TGA) and Reverse Repurchase Agreements (RRP), both of which are subtracted from the Federal Reserve's balance sheet to give a more nuanced view of US liquidity. Users have the flexibility to enable or disable specific central banks and special accounts based on their preference. Only central banks that both don’t engage in currency pegging and have reliable data available from late 2007 onwards are included in this aggregated liquidity model.
Global Liquidity Index = Federal Reserve System (FED) - Treasury General Account (TGA) - Reverse Repurchase Agreements (RRP) + European Central Bank (ECB) + People's Bank of China (PBC) + Bank of Japan (BOJ) + Bank of England (BOE) + Bank of Canada (BOC) + Reserve Bank of Australia (RBA) + Reserve Bank of India (RBI) + Swiss National Bank (SNB) + Central Bank of the Russian Federation (CBR) + Central Bank of Brazil (BCB) + Bank of Korea (BOK) + Reserve Bank of New Zealand (RBNZ) + Sweden's Central Bank (Riksbank) + Central Bank of Malaysia (BNM).
This tool is beneficial for anyone seeking to get a snapshot of global liquidity to interpret macroeconomic trends. By examining these balance sheets, users can deduce policy trajectories and evaluate the global economic climate. It also offers insights into asset pricing and assists investors in making informed capital allocation decisions. Historically, riskier assets, such as small caps and cryptocurrencies, have typically performed well during periods of rising liquidity. Thus, it may be prudent for investors to avoid additional risk unless there's a consistent upward trend in global liquidity.
