The Money Supply Indicator for Investors by Stef

The recent growth in the Money Supply and the accompanying inflation have fascinated many of us. This intrigue led me to create Stef’s Money Supply Indicator, a tool designed to chart and analyze symbols based on the Money Supply. This indicator provides capabilities that no other tool in this field currently offers. Let me explain how it works and why it’s essential for traders.

How Does the Money Supply Indicator Work?

When you chart any symbol and turn on this indicator, it instantly factors in the M2 money supply on the asset’s underlying price. Essentially, you are viewing the price of the asset normalized for the corresponding rise in the money supply. This provides a unique, inflation-adjusted perspective of a symbol’s price.

More importantly, the indicator allows you to compare and contrast the symbol’s price adjusted for the rise in the Money Supply against the symbol’s price without that adjustment. By indexing all lines to 100, you can easily determine if the asset is at all-time highs, lows, or possibly undervalued or overvalued based on the current money supply situation.

Why Does This Matter?

This tool offers a deeper understanding of how the overall money supply influences the value of assets over time. By adjusting asset prices for changes in the money supply, traders can see the true value of assets relative to the amount of money in circulation. This insight is crucial for making informed trading decisions.

Key Features of the Money Supply Indicator

1. Normalization to 100: The ability to normalize all lines to a starting point of 100 allows traders to compare the performance of the Money Supply, the symbol price, and the symbol price adjusted for the money supply all on one readable chart. This feature is particularly useful for spotting divergences and understanding relative performance over time with a rising or falling Money Supply.
2. Spotting Highs and Lows: Quickly identify the highest and lowest points on the Money Supply adjusted price of your asset.
3. Customizable Gradient Colors: Change the gradient colors of the line when it goes up or down, making it easier to visualize trends.
4. “Brrrrrrr Printer” Text: Add a humorous reminder of our Fed Overlord Jerome Powell with the “Brrrrrrr printer” text feature.
5. Integration with Main Chart: Drag this indicator onto your main chart to combine it with your candlesticks or other charting techniques.

Recent Updates

July 24 Release Notes

I’m excited to announce a new feature in the Settings menu:

1. Custom Moving Average: Create a custom moving average to smooth out the Money Supply indicator over time. This allows you to compare and contrast it with the raw data and other pricing data, providing a clearer picture of trends and fluctuations.

Future Enhancements

This is just version 1, and I have plans to add more features soon. Your feedback is invaluable, and I look forward to hearing your thoughts and suggestions to make this tool even better.

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Thank you for reading! I hope you find Stef’s Money Supply Indicator as useful as I do. Stay tuned for more updates and enhancements in the near future!

Get it here: https://www.tradingview.com/script/lxq4NNKh-Stef-s-Money-Supply-Indicator/

Want to explore more of Stef’s trading tools? Check out Stef’s Dollar Volume Counter, see how to make your own custom index, and learn how to use TradingView to put these indicators to work.