OPEN-SOURCE SCRIPT
Maschke-Indikator
This indicator is based on market data independently from the current chart being used. It considers data from FED (M2, net liquidity) as well as heavy truck index and Redbook index. This combination allows the determination of the current market situation and factors that influence short term future economy.
As an indicator is not able to determine the absolute maximum values and it does not make sense to shed light back to history more than 5 years or to consider those minimum values long time ago, the default minimum and maximum values for the 4 primary indicators have been selected to fix to those in the last 5 years, with the possibility to change the consideration limits for the user. As the index is calculated in percentage between those ranges, the values entered for minimum and maximum have great influence, but also give the experienced user the possibility to change those limits based on her or his knowledge.
This indicator has a particularly high correlation with the S&P 500. It is clearly leading in some places. I use the indicator on the daily and hourly charts, manually bring the indicator over the S&P chart as best I can and see if the indicator is showing a major breakout ahead that the chart hasn't followed yet. Larger deviations are also a sign that the price is moving too far away from the indicator and that this deviation will probably be closed in the near future. The indicator shows the theoretical course more from the economic side, how the course should run. The deviation is therefore primarily due to the mood. I recommend using the indicator together with others, so as not to rely on this indicator alone.
https://www.tradingview.website/x/piMOWznu/
https://www.tradingview.website/x/zegD7464/
As an indicator is not able to determine the absolute maximum values and it does not make sense to shed light back to history more than 5 years or to consider those minimum values long time ago, the default minimum and maximum values for the 4 primary indicators have been selected to fix to those in the last 5 years, with the possibility to change the consideration limits for the user. As the index is calculated in percentage between those ranges, the values entered for minimum and maximum have great influence, but also give the experienced user the possibility to change those limits based on her or his knowledge.
This indicator has a particularly high correlation with the S&P 500. It is clearly leading in some places. I use the indicator on the daily and hourly charts, manually bring the indicator over the S&P chart as best I can and see if the indicator is showing a major breakout ahead that the chart hasn't followed yet. Larger deviations are also a sign that the price is moving too far away from the indicator and that this deviation will probably be closed in the near future. The indicator shows the theoretical course more from the economic side, how the course should run. The deviation is therefore primarily due to the mood. I recommend using the indicator together with others, so as not to rely on this indicator alone.
https://www.tradingview.website/x/piMOWznu/
https://www.tradingview.website/x/zegD7464/
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.