How I Developed a Trading Indicator That Boasts Over 350% Returns—and How to Get It for Free

Introduction

In the world of investing, the classic dream of “buy low and sell high” can feel as elusive as a magic potion. Everyone wants it, yet few ever seem to crack the formula. What if I told you there’s a simple tool—an indicator—that can help you read the market’s deepest signals with surprising accuracy? That’s exactly what I’m sharing here: my method for measuring the gap between liquidity (money flows) and market performance, which has provided mind-blowing trade signals over the years.

Introduction

In the world of investing, the classic dream of “buy low and sell high” can feel as elusive as a magic potion. Everyone wants it, yet few ever seem to crack the formula. What if I told you there’s a simple tool—an indicator—that can help you read the market’s deepest signals with surprising accuracy? That’s exactly what I’m sharing here: my method for measuring the gap between liquidity (money flows) and market performance, which has provided mind-blowing trade signals over the years.

Ready to take the plunge? Head over to TradingView to unlock advanced charting features, and start exploring the markets like a pro.

Don’t get too excited, though. This might seem easy on the surface, but it’s based on one of the most powerful drivers in financial markets: liquidity. I’ve tested this indicator for years, and it consistently predicts market reversals and helps hold onto winning trades.

1) The Core Idea: Why Does Liquidity Affect Prices So Much?

The indicator tracks growth in liquidity (provided by central banks, primarily the U.S. Federal Reserve) and compares it to major market indexes like the S&P 500.

1. When money supply (M2) expands: There is more liquidity sloshing around in the market.
2. When liquidity is reduced: We often see negative repercussions or slowdowns in equities and currencies.

The Basic Premise

. If liquidity growth outpaces the growth of a major index (like the S&P 500), there’s a “golden” buy opportunity—because money is pouring in faster than prices are rising.

. If liquidity lags behind market growth, it’s a warning signal. Things might be overheating.

Ready to take the plunge? Head over to TradingView to unlock advanced charting features, and start exploring the markets like a pro.

2) Indicator in a Nutshell: (Divergence Indicator)

Measuring the Gap (Growth Divergence)

The indicator calculates the difference between the rate of liquidity growth and the rate of growth of the asset you’re trading (be it an index or a single stock).

• Green Bars: They scream, “Hey, buddy, liquidity is growing faster than prices—maybe it’s time to hop on for the ride up!”
• Red Bars: They whisper doom, cautioning that “Prices are outpacing liquidity. Could be time for a market correction.”
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3) The Backtesting Results: Returns Up to 350%

Yes, you read that correctly—350%. A number so large, it practically begs for an asterisk. I tested this indicator over 50 years of data in the U.S. market. Here are the key findings:

1. High Accuracy for Timing Bottoms: Each time liquidity surged ahead of the index, prices followed with a bullish rally.
2. Sky-High Profit Potential per Trade: When used properly on leveraged ETFs or strong individual stocks, it’s not unusual to see trades exceeding 350% returns.
3. Works with Other Assets: When applied to cryptocurrencies (like Bitcoin) or leveraged index ETFs (e.g., TQQQ, UPRO), the moves can be explosively larger—but (shocker!) so are the risks.

4) Protecting Yourself From Market Crashes

One of the best things about this indicator is its ability to warn you when the market is living on borrowed time. If liquidity fails to keep up with lofty price heights, you’ll notice fewer green bars or a complete switch to red bars.

• Practical Example: If you see a negative liquidity gap (i.e., liquidity isn’t keeping pace with price increases), that’s your friendly heads-up to bail out early or at least tighten your stop-losses.

Ready to take the plunge? Head over to TradingView to unlock advanced charting features, and start exploring the markets like a pro.

5) The Easiest Way to Try the Indicator: TradingView

If you want real-time charts, community scripts, and automation tools, TradingView is your best friend. On TradingView, you can:

• Access a Huge Community: Integrate tons of other free or premium indicators.
• Set Smart Alerts: Get notifications whenever your beloved green or red bars pop up.
• Easy Scripting & Customization: Tweak the indicator to fit your strategy, whether short-term scalp trades or long-term holds.

6) Getting Started

Create a TradingView Accoun

• It’s free, but you can also upgrade if you’re feeling fancy (and want more bells and whistles).

Add the Indicator to Your Chart

• I’ll publish a public or open-source version of the “Divergence Indicator” so you can try it yourself.

Paper Trade First

• Try it risk-free in a simulated account or with a small capital test. We don’t want you losing your shirt right away, do we?

Plan Your Risk Management

• Set stop-losses, define profit targets, and keep a close eye on that liquidity momentum.
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7) Closing Thoughts

Look, there’s no magical button in the market that spits out guaranteed riches every time you click it. If there were, we’d all be sipping smoothies on the beach while our money multiplied in the background. However, an indicator that tracks liquidity in relation to price growth can give your investment strategy one heck of a boost.

If liquidity is surging beyond price growth, the market usually “catches up” (a.k.a. a buy signal).

If prices soar without matching liquidity, brace for a correction (time to exit or reduce positions).

Ready to Dive Deeper?

Try the indicator yourself on TradingView. If you decide to upgrade using my referral link, you’ll score extra analytical goodies. (And I might get enough commission to buy an overpriced latte—everyone wins.)

Remember: Past performance doesn’t guarantee future results. Do your own research, practice proper risk management, and never invest more than you’re prepared to lose. Because, despite our best efforts, the market has its own sense of humor—and it can be brutal.

Ready to take the plunge? Head over to TradingView to unlock advanced charting features, and start exploring the markets like a pro.

TL;DR

• Money Flow Indicators can accurately gauge market conditions.
• TradingView is an excellent platform for real-time market monitoring and automations.
• With the right timing and strict risk management, you could achieve trades returning over 350%.
• The real secret is knowing when to act and how to manage risk like a pro.