OPEN-SOURCE SCRIPT
Global Net Liquidity - Offset
Purpose
This indicator tracks the combined balance-sheet liquidity provided by the world’s five largest central banks, then subtracts the U.S. Treasury General Account (TGA) and the Fed’s Reverse Repo Facility (RRP).
The result is a high-level proxy for global US-dollar availability that many market participants see leading risk-asset trends.
Formula
Fed Assets (FRED: WALCL)
+ BoJ Assets × USDJPY
+ PBoC Assets × USDCNY
+ BoE Assets × USDGBP
+ ECB Assets × USDEUR
– Fed RRP (FRED: RRPONTSYD)
– Treasury General Account (FRED: WTREGEN)
All series are converted to USD and summed on a daily basis.
What’s new in this version
Plot Offset – Shift the curve forward or backward ±500 trading days (positive = future) to visualise the commonly cited 10 to 12 week lead/lag between liquidity and equity indices.
Optional Smoothing – Apply either a Simple Moving Average (SMA) or Exponential Moving Average (EMA) of any length to damp daily noise and focus on structural turns.
How to use it
This indicator tracks the combined balance-sheet liquidity provided by the world’s five largest central banks, then subtracts the U.S. Treasury General Account (TGA) and the Fed’s Reverse Repo Facility (RRP).
The result is a high-level proxy for global US-dollar availability that many market participants see leading risk-asset trends.
Formula
Fed Assets (FRED: WALCL)
+ BoJ Assets × USDJPY
+ PBoC Assets × USDCNY
+ BoE Assets × USDGBP
+ ECB Assets × USDEUR
– Fed RRP (FRED: RRPONTSYD)
– Treasury General Account (FRED: WTREGEN)
All series are converted to USD and summed on a daily basis.
What’s new in this version
Plot Offset – Shift the curve forward or backward ±500 trading days (positive = future) to visualise the commonly cited 10 to 12 week lead/lag between liquidity and equity indices.
Optional Smoothing – Apply either a Simple Moving Average (SMA) or Exponential Moving Average (EMA) of any length to damp daily noise and focus on structural turns.
How to use it
- Add the script to a separate pane on a daily-time-frame chart (e.g., SPX, BTC-USD).
- Adjust Plot Offset until major peaks/troughs in liquidity line up with market turns; many traders start near +50 trading days.
- Optionally Toggle Apply Smoothing and choose SMA or EMA when abrupt central-bank balance-sheet moves create visual “spikes.”
Credits & licence
Originally published as “Global Net Liquidity” by dharmatech under the Mozilla Public License 2.0. This fork by LabOfCrypto adds offset and smoothing, plus minor usability tweaks. It remains open-source under the MPL-2.0.
Disclaimer
For educational purposes only. Past liquidity patterns do not guarantee future market behaviour; always combine with sound risk management.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.