OPEN-SOURCE SCRIPT
💧 USD Liquidity Index (Fed + M2 + Base)
This custom indicator tracks USD liquidity by combining the Federal Reserve’s total assets (WALCL), M2 money supply (M2SL), and the monetary base (BASE) — all sourced from FRED (Federal Reserve Economic Data).
It's designed to provide a macro-level view of liquidity conditions in the U.S. financial system. This index can be used to help gauge the risk-on vs risk-off environment for assets like Bitcoin, equities, and commodities.
Higher values typically indicate liquidity expansion (bullish for risk assets).
Declining values indicate liquidity contraction or quantitative tightening (bearish for risk assets).
📊 Data Sources:
FRED:WALCL – Fed Balance Sheet
FRED:M2SL – M2 Money Supply
FRED:BASE – Monetary Base
⚠️ Weekly timeframe only. Designed for macro swing traders, crypto investors, and liquidity-driven strategists.
It's designed to provide a macro-level view of liquidity conditions in the U.S. financial system. This index can be used to help gauge the risk-on vs risk-off environment for assets like Bitcoin, equities, and commodities.
Higher values typically indicate liquidity expansion (bullish for risk assets).
Declining values indicate liquidity contraction or quantitative tightening (bearish for risk assets).
📊 Data Sources:
FRED:WALCL – Fed Balance Sheet
FRED:M2SL – M2 Money Supply
FRED:BASE – Monetary Base
⚠️ Weekly timeframe only. Designed for macro swing traders, crypto investors, and liquidity-driven strategists.
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.