Hikaru's M2 Watch is a macro-liquidity momentum indicator designed to track the relationship between global M2 money supply dynamics and asset price movements. By comparing the rate of change in worldwide monetary liquidity against your selected asset, this tool helps identify potential lead-lag relationships that may signal macro-driven trend shifts.

Core Concept & Calculation:

The indicator aggregates M2 money supply data from 20 major economies (including the US, EU, China, Japan, and others), converting all values to USD to create a unified Global Liquidity metric. It then calculates a 3Mo3M% momentum measure—the 3-month rate of change compared to the prior 3-month period—for both global M2 and your current chart's asset. This dual momentum approach reveals acceleration or deceleration in both liquidity conditions and asset prices. The M2 line is plotted with a configurable forward offset (default 90 days), allowing you to visualize whether changes in global liquidity historically lead or lag movements in your asset.