OPEN-SOURCE SCRIPT
Global Liquidity Index 10 Week Lead
This script is an extension of the Global Liquidity Index, incorporating a key modification: a 10-week lead adjustment.
The indicator values are shifted forward by 10 weeks, dynamically adapting to the chart's timeframe (daily, weekly, monthly). This adjustment plots the lead values ahead of the current time, offering a clearer visual alignment with potential future trends. The approach aligns with the theory explored and popularized by Michael Howell of CrossBorder Capital and Raoul Pal of Global Macro Investor, which suggests that Bitcoin typically lags global liquidity by approximately 8 to 12 weeks.
The Global Liquidity Index is calculated based on the following components:
Major Central Banks:
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).
M2 Money Supply:
Includes M2 for the USA, Europe, China, Japan, UK, Canada, Australia, India, Switzerland, Russia, Brazil, Korea, Mexico, Indonesia, South Africa, Malaysia, and Sweden.
The indicator values are shifted forward by 10 weeks, dynamically adapting to the chart's timeframe (daily, weekly, monthly). This adjustment plots the lead values ahead of the current time, offering a clearer visual alignment with potential future trends. The approach aligns with the theory explored and popularized by Michael Howell of CrossBorder Capital and Raoul Pal of Global Macro Investor, which suggests that Bitcoin typically lags global liquidity by approximately 8 to 12 weeks.
The Global Liquidity Index is calculated based on the following components:
Major Central Banks:
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).
M2 Money Supply:
Includes M2 for the USA, Europe, China, Japan, UK, Canada, Australia, India, Switzerland, Russia, Brazil, Korea, Mexico, Indonesia, South Africa, Malaysia, and Sweden.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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