Updated script for jlb05013's original Fed Net Liquidity Indicator. TradingView was bringing in the FRED data in different units than they used to. This code fixes it.
This indicator aims to present a "Net Liquidity" indicator comprised of the Fed Balance sheet , less the TGA account and Overnight Reverse REPO agreements.
This is an overlay that can be added to stock or other charts (like SPY ) to see how the market may appear correlated to Net Liquidity - injection of liquidity into the markets.
This was hypothesized by Max Anderson, this is just a script realizing that posting.
New updates include a resolution feature, and an option to offset backwards by 2 days per original intent.
Hi, nice! Could you please tell the idea behind forward offset (10 days for daily TF etc), I may allow an idea of backwards offset though since data may have been delayed.
tpuigdellivol
⋅
Awesome!!! Thanks!
kanageshenviled
⋅
@tpuigdellivol, @TaxShields So How to confirm this if the values shown by the indicator are correct? Can you kindly share the FRED link to data released by them... (Max Anderson was predicting in his Twitter page for SPX to fall below 3500, That would have been a horrible mistake) So can you please provide an educational piece on how to use this indicator without going wrong
TaxShields
⋅
@kanageshenviled, there's really no way to not go wrong. It's just an indicator and it could always eventually not work anymore. But the idea is that post-covid the market is mainly determined by fed actions. Kinda true, maybe not. From this indicator though, it does have a pretty good track record lately of predicting market reversals. If you want the FRED links, here you go: fred.stlouisfed.org/series/WALCL fred.stlouisfed.org/series/WTREGEN fred.stlouisfed.org/series/RRPONTSYD