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Global M2 ex-China Monitor

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Global M2 Monitor - Ultimate Edition

🎯 OVERVIEW
Advanced global M2 money supply monitoring indicator, offering a unique macroeconomic view of global liquidity. Real-time tracking of M2 evolution in major developed economies.

📊 KEY FEATURES
  • Global M2 Aggregation: USA, Japan, Canada, Eurozone, United Kingdom
  • Currency Conversion: All data converted to USD for consistent analysis
  • High Resolution Display: Daily curve by default
  • Technical Analysis: 50-period moving average (SMA/EMA/WMA)
  • Accurate YoY Calculation: Annual variation based on monthly data
  • Advanced Signal System: Multi-condition color codes


🎨 COLOR SYSTEM - DEFAULT SETTINGS
  • 🟢 GREEN: YoY ≥ 7% AND M2 ≥ SMA → Strong growth + Bullish momentum
  • 🔴 RED: YoY ≤ 2% AND M2 ≤ SMA → Weak growth + Bearish momentum
  • 🟢 LIGHT GREEN: YoY ≥ 7% BUT M2 < SMA → Good fundamentals, temporarily weak momentum
  • 🔴 LIGHT RED: YoY ≤ 2% BUT M2 > SMA → Weak fundamentals, price still supported
  • 🔵 BLUE: YoY between 2% and 7% → Neutral zone of moderate growth


🇨🇳 WHY IS CHINA EXCLUDED BY DEFAULT?

Chinese M2 data presents methodological reliability and transparency issues. Exclusion allows for more consistent analysis of mature market economies.

  • Different M2 definition vs Western standards
  • Capital controls affecting real convertibility
  • Frequent monetary manipulations by authorities
  • Available option: Can be activated in settings


⚙️ OPTIMIZED DEFAULT PARAMETERS
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// DISPLAY SETTINGS Candle Period: D (Daily) // MOVING AVERAGE MA Period: 50, Type: SMA // BACKGROUND LOGIC YoY Bullish: 7%, YoY Bearish: 2% SMA Method: absolute, Threshold: 0.2% // COLORS Transparency: 5% China M2: Disabled


📈 RECOMMENDED USAGE
  • Traders: Anticipate sector rotations
  • Investors: Identify abundant/restricted liquidity phases
  • Macro-analysts: Monitor monetary policy impacts
  • Portfolio managers: Understand inflationary pressures


🔍 ADVANCED INTERPRETATION
  • M2 ↗️ + YoY ≥ 7% → Favorable risk-on environment
  • M2 ↘️ + YoY ≤ 2% → Defensive risk-off environment
  • Divergences → Early warning signals for trend changes


💡 WHY THIS INDICATOR?
Global money supply is the lifeblood of the financial economy. Its growth or contraction typically precedes market movements by 6 to 12 months.

"Don't fight the Fed... nor the world's central banks"


🛠️ ADVANCED CUSTOMIZATION
All parameters are customizable:
  • YoY bullish/bearish thresholds
  • SMA comparison method (absolute/percentage)
  • Colors and transparency
  • Moving average period and type
  • Optional China inclusion


📋 TECHNICAL INFORMATION
  • YoY Calculation: Based on monthly data for consistency
  • Sources: FRED, ECONOMICS, official data
  • Updates: Real-time with publications
  • Currencies: Updated exchange rates
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UPDATE NOTE: Global M2 Monitor v2.0

NEW FEATURES:
• 🎨 Dual Display Modes:
- Classic Mode: Green/red candles (original behavior)
- Colored Mode: Single line with dynamic colors based on MA deviation percentage

• 7 Customizable Color Zones in Colored Mode:
- Strong Expansion (+5%+), Expansion (+3-5%), Slight Expansion (+1-3%)
- Neutral Zone (-1 to +1%)
- Slight Contraction (-3 to -1%), Contraction (-5 to -3%), Severe Contraction (-5%-)

• Enhanced Information Table (8 cells):
- Mode indicator (🎨 COLORED / 📊 CLASSIC)
- Deviation from MA (percentage)
- Zone description in Colored Mode
- China inclusion status

• Customizable Deviation Thresholds:
- Set your own percentage levels for each color zone
- Optional deviation level lines (±3%, ±5%)

IMPROVEMENTS:
• Inputs organized into logical groups
• Background colors adapt to selected mode
• Better visual clarity for different market conditions
• Maintains full backward compatibility in Classic Mode

MIGRATION:
• All existing settings preserved in Classic Mode
• Toggle between modes with one checkbox
• Customize colors and thresholds for each zone

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