Risk-On vs Risk-Off Meter (Pro)

Risk-On vs Risk-Off Meter (Pro)

This macro-based tool analyzes capital flows across key assets to gauge overall market risk sentiment. It does not use ES, SPY, or stock data directly—making it a powerful confirmation tool for ES traders looking to align with macro forces.

🔹 Core Idea:
Tracks capital rotation between copper/gold, bonds, dollar, crude oil, VIX, and yield spreads to generate a normalized risk score (0–1). This score reflects whether macro money is flowing into risk or safety.

🔹 Use:
Use this indicator as confirmation of directional bias when scalping or day trading ES.
– Green Zone (>0.75): Risk-On environment. Favor long setups.
– Red Zone (<0.45): Risk-Off. Favor short setups or stand aside.
– Yellow Zone: Neutral, use caution.
– Divergence Alerts: Signals when ES price disagrees with macro risk trend—potential reversals or exhaustion zones.

HOT TO USE

– Combine with your existing price action or order flow signals
– Avoid trading against the macro sentiment unless strong setup
– Use divergence as a heads-up for fading or exiting trades

This gives you a macro-informed lens to validate or filter your entries.