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Liquidity Stress Oscillator Pro2
Liquidity Stress Oscillator Pro2
The Liquidity Stress Oscillator Pro2 is a macro risk-regime indicator designed to visualize broad market liquidity stress using a weighted composite of credit, volatility, dollar strength, funding pressure, and yield-curve conditions.
This oscillator is intended to help traders identify when macro liquidity conditions are improving, neutral, deteriorating, or entering elevated stress. In the BTC comparison shown, the oscillator highlights several major macro regime transitions that have aligned with important Bitcoin cycle shifts.
What It Measures;
LSO Pro2 combines normalized z-scores from multiple macro stress inputs:
- CCC option-adjusted spreads
- High-yield credit spreads
- MOVE bond volatility index
- U.S. Dollar Index
- SOFR / repo stress proxy
- 10Y-2Y yield curve
Each component is converted into a z-score over the selected lookback period, then blended into a weighted composite. The yield curve component is inverted so that deeper curve weakness contributes to higher stress.
Regime Levels;
The oscillator uses adjustable regime thresholds to help dial in trends on different timeframes.
Extreme Risk Off
Risk Off
Neutral
Risk On
The line color, background shading, and regime markers update automatically as the composite moves between regimes.
Features;
- Weighted macro liquidity-stress composite
- Adjustable z-score length and smoothing
- Customizable component symbols
- Optional raw composite display
- Regime background shading
- Risk On, Risk Off, and Extreme Risk Off markers
- Regime table with key component readings
- Works across assets and timeframes, especially useful for macro-sensitive markets like BTC, equities, indexes, and risk assets
How To Use;
Rising LSO values indicate increasing macro stress and tightening liquidity conditions. Falling LSO values indicate easing stress and improving risk appetite.
Risk On regimes may support stronger risk-asset environments, while Risk Off and Extreme Risk Off regimes may warn of elevated caution, deleveraging, or liquidity pressure.
This tool is best used as a macro regime filter alongside price action, trend structure, volume, and risk management. It is not designed to generate standalone buy or sell signals.
Notes;
Some symbols may depend on TradingView data availability. If a component does not load on your chart, replace it in the indicator settings with an equivalent symbol supported by your data feed.
Default weights emphasize credit stress, especially CCC spreads, because lower-quality credit markets often react strongly during liquidity contractions.
Disclaimer;
This indicator is for educational and informational purposes only. It does not provide financial advice and should not be used as the sole basis for trading or investment decisions. Always use proper risk management and perform your own analysis.
The Liquidity Stress Oscillator Pro2 is a macro risk-regime indicator designed to visualize broad market liquidity stress using a weighted composite of credit, volatility, dollar strength, funding pressure, and yield-curve conditions.
This oscillator is intended to help traders identify when macro liquidity conditions are improving, neutral, deteriorating, or entering elevated stress. In the BTC comparison shown, the oscillator highlights several major macro regime transitions that have aligned with important Bitcoin cycle shifts.
What It Measures;
LSO Pro2 combines normalized z-scores from multiple macro stress inputs:
- CCC option-adjusted spreads
- High-yield credit spreads
- MOVE bond volatility index
- U.S. Dollar Index
- SOFR / repo stress proxy
- 10Y-2Y yield curve
Each component is converted into a z-score over the selected lookback period, then blended into a weighted composite. The yield curve component is inverted so that deeper curve weakness contributes to higher stress.
Regime Levels;
The oscillator uses adjustable regime thresholds to help dial in trends on different timeframes.
Extreme Risk Off
Risk Off
Neutral
Risk On
The line color, background shading, and regime markers update automatically as the composite moves between regimes.
Features;
- Weighted macro liquidity-stress composite
- Adjustable z-score length and smoothing
- Customizable component symbols
- Optional raw composite display
- Regime background shading
- Risk On, Risk Off, and Extreme Risk Off markers
- Regime table with key component readings
- Works across assets and timeframes, especially useful for macro-sensitive markets like BTC, equities, indexes, and risk assets
How To Use;
Rising LSO values indicate increasing macro stress and tightening liquidity conditions. Falling LSO values indicate easing stress and improving risk appetite.
Risk On regimes may support stronger risk-asset environments, while Risk Off and Extreme Risk Off regimes may warn of elevated caution, deleveraging, or liquidity pressure.
This tool is best used as a macro regime filter alongside price action, trend structure, volume, and risk management. It is not designed to generate standalone buy or sell signals.
Notes;
Some symbols may depend on TradingView data availability. If a component does not load on your chart, replace it in the indicator settings with an equivalent symbol supported by your data feed.
Default weights emphasize credit stress, especially CCC spreads, because lower-quality credit markets often react strongly during liquidity contractions.
Disclaimer;
This indicator is for educational and informational purposes only. It does not provide financial advice and should not be used as the sole basis for trading or investment decisions. Always use proper risk management and perform your own analysis.
Скрипт с открытым кодом
В истинном духе TradingView, создатель этого скрипта сделал его открытым исходным кодом, чтобы трейдеры могли проверить и убедиться в его функциональности. Браво автору! Вы можете использовать его бесплатно, но помните, что перепубликация кода подчиняется нашим Правилам поведения.
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.
Скрипт с открытым кодом
В истинном духе TradingView, создатель этого скрипта сделал его открытым исходным кодом, чтобы трейдеры могли проверить и убедиться в его функциональности. Браво автору! Вы можете использовать его бесплатно, но помните, что перепубликация кода подчиняется нашим Правилам поведения.
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.