GlossaryCustom Symbol Overlay
Custom Symbol Overlay
Overlays the US M2 money supply on the price, on a logarithmic scale and shifted forward in time. The thesis behind it: liquidity leads the price. With the offset, the two curves lie on top of each other, and you can see whether the price is currently following the money supply.
Good to know
- Intended for 1D to 1W. M2 is a monthly value and is published a few weeks late, so the most recent month is often missing at the right edge.
- The offset counts candles. On charts without weekend trading, such as stocks, 90 candles are a little more than four months.
- The study doesn't draw the part of the shifted line that would extend past the last candle.
- The comparison series is fixed to the US M2 money supply. For an offset in true calendar days and without the logarithm, use the M2 Overlay (US M2, 90-day lead).