Weighted Global Liquidity Index (WGLI) Trend Indicator EMA

The Weighted Global Liquidity Index (WGLI) Trend Indicator EMA leverages the WGLI to provide a comprehensive view of major central bank balance sheets and other key financial indicators from around the world. Using data converted to USD for consistency, this indicator calculates the Exponential Moving Average (EMA) of the WGLI to help identify global liquidity trends.

Key Features:

• Trend Identification: Utilizes the Exponential Moving Average (EMA) to determine the trend direction of the WGLI. By comparing the EMA of the WGLI with the EMA of the asset price, the indicator identifies uptrends and downtrends. The EMA is more responsive to recent price changes compared to the SMA, making it suitable for capturing shorter-term trends.
  
  
• Visual Representation: Highlights uptrends with a green background and downtrends with a red background on the chart, making it easy to visualize the overall trend.
  

The WGLI Trend Indicator EMA is designed to be used alongside the WGLI for a more comprehensive analysis of global liquidity and its impact on asset prices. This tool is beneficial for understanding macroeconomic trends, and policy trajectories, and making informed investment decisions. The EMA provides a more reactive measure compared to the SMA, which may be preferred for identifying short-term trends. However, the SMA can be used as an alternative for those who prefer a smoother trend indicator less sensitive to short-term fluctuations.

Feel free to explore and customize the script to suit your analysis needs!