A global liquidity and money supply index that tracks central bank interventions and monetary aggregates across multiple regions to help investors understand market conditions.
Explore complementary indicator rolesHow it works
The script collects money supply data from key global markets like the USA, Europe, China, and Japan, including optional data from additional countries. It calculates a consolidated index by summing the enabled money supply series and central bank liquidity data, then scales the total by dividing by one trillion to create a more readable chart representation.
The indicator allows for a time offset feature, enabling users to shift the plotted index line by a specified number of days. This adjustment helps account for the potential delay between liquidity changes and their subsequent impact on asset prices, providing a more nuanced view of monetary trends.
Why it may be useful
This liquidity index offers traders a comprehensive view of global monetary conditions by consolidating data from multiple central banks and markets. It provides insights into how central banks are intervening in the financial system, which can signal potential market movements and economic trends.
By combining money supply data with central bank liquidity information, investors can better understand the broader economic landscape. The indicator helps traders anticipate potential price changes, gauge inflationary pressures, and make more informed investment decisions based on a holistic view of global monetary policy.
When to explore it
The global liquidity index is most effective during periods of significant economic uncertainty or when central banks are actively implementing monetary policies. Traders can use this tool to monitor potential shifts in market conditions, especially during times of economic transition or when central banks are adjusting their liquidity strategies.
The indicator is particularly valuable during major economic events, such as policy changes, global financial crises, or periods of unusual market volatility. Investors can leverage this index to gain insights into potential market movements, assess the overall health of different economies, and make more strategic investment choices.
Keep exploring
What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
![M2 Global Liquidity Index [Extended + Offset] chart preview](/_next/image?url=%2Fmedia%2F19824.png&w=3840&q=90&dpl=dpl_Jt27hmzh6tNsGuJ13vyBBWgv8XSW)
