Triad Macro Gauge

How it works

The Triad Macro Gauge calculates z-scores for three key macroeconomic indicators: VIX volatility, credit spreads, and the SPY/TLT ratio. Each indicator is evaluated for its deviation from historical mean, with different weightings to assess market sentiment.

The composite TMG score is derived by combining these z-scores, with bullish conditions indicated by scores above +0.30 and bearish conditions signaled by scores below -0.30. Anomaly detection is incorporated to identify extreme volatility spikes when z-scores exceed 3.0.

Why it may be useful

The Triad Macro Gauge provides traders with a holistic view of market conditions by synthesizing multiple critical economic signals into a single, actionable metric. By integrating volatility, credit risk, and equity sentiment, it offers a more comprehensive assessment of potential market trends than individual indicators.

This multi-dimensional approach helps traders understand underlying market dynamics, anticipate potential reversals, and make more informed investment decisions across different timeframes.

When to explore it

The Triad Macro Gauge is most effective for swing traders and long-term investors seeking to navigate macro-driven market environments. It is optimized for timeframes ranging from 4-hour charts to weekly analyses, providing consistent insights across different trading horizons.

Traders should use this indicator when looking to assess overall market sentiment, identify potential trend reversals, and gain a broader perspective on macroeconomic conditions that might impact investment strategies.

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