ATH adjusted by Global Money Supply

How it works

The script calculates the All-Time High by tracking daily candle highs while simultaneously integrating a global money supply index as a normalization factor. It uses the money supply value from the first bar as a reference point, subsequently comparing subsequent price levels against this baseline adjusted for monetary expansion.

By incorporating data from multiple central banks and converting it to a USD value, the script creates a comprehensive money supply index. This allows traders to view price performance through a lens that accounts for potential inflationary or deflationary pressures inherent in changing monetary conditions.

Why it may be useful

Traditional price analysis often overlooks the impact of monetary policy and global money supply on asset valuation, potentially providing a misleading representation of true value. By adjusting the All-Time High against money supply changes, traders gain a more nuanced understanding of an asset's genuine price performance beyond nominal values.

This approach enables investors to distinguish between real economic growth and mere monetary inflation, offering a more sophisticated perspective on long-term investment strategies. It helps traders identify whether price increases represent genuine value appreciation or are simply a result of expanded money supply.

When to explore it

This indicator is most valuable for long-term investors and swing traders seeking a macro-level perspective on asset performance across extended timeframes. It is particularly useful when analyzing assets that are sensitive to monetary policy, such as cryptocurrencies, stocks, and commodities.

Traders should leverage this tool during periods of significant monetary policy shifts, global economic transitions, or when comparing asset performance across different economic cycles. It provides a more comprehensive view of investment performance by accounting for the underlying monetary context.

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