This indicator is inspired by Raoul Pal's and Julien Bittel concept of excess liquidity, which serves as a leading macroeconomic signal for risk assets. Excess liquidity is calculated as M2 money supply plus central bank balance sheets minus GDP, adjusted for key macro factors including oil prices, the US Dollar Index (DXY), US 10-year Treasury yield (US10Y), and Chinese 10-year bond yield (CN10Y). The script provides insights into liquidity-driven market trends, helping traders assess potential turning points in asset prices."
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