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WRESBAL ROC Oscillator (Clean)

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This indicator tracks the rate of change in Federal Reserve reserve balances (WRESBAL) to visualize shifts in systemic liquidity. It measures how quickly reserves are expanding or contracting over a chosen lookback window (default 26 weeks), then smooths the result to highlight durable macro trends rather than short-term noise.

Green = expanding reserves → liquidity easing → risk-asset support

Red = contracting reserves → liquidity tightening → headwind for risk assets

The oscillator is designed for macro context rather than short-term trading. It correlates strongly with major equity and credit cycles, often leading inflection points in the S&P 500 and Nasdaq by several weeks.

Use it to identify transitions between QE (quantitative easing) and QT (quantitative tightening) regimes and to gauge the liquidity environment driving broad market behavior.

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