Purchasing Managers Index (PMI)The Purchasing Managers Index (PMI) is a widely recognized economic indicator that provides crucial insights into the health and performance of an economy's manufacturing and services sectors. This index is a vital tool for anticipating economic developments and trends, offering an early warning system for changes in these sectors.
The PMI is calculated based on surveys conducted among purchasing managers in various businesses and organizations. These managers are asked about their perceptions of current business conditions and their expectations for future economic activity within their sectors. The responses are then compiled and used to calculate the PMI value.
A PMI value above 50 typically indicates that the manufacturing or services sector is expanding, suggesting a positive economic outlook. Conversely, a PMI value below 50 suggests contraction, which may be an early indication of economic challenges or a potential recession.
In summary, the Purchasing Managers Index (PMI) is an essential economic indicator that assesses the health of manufacturing and services sectors by surveying purchasing managers' opinions. It serves as an early warning system for changes in economic activity and is a valuable tool for forecasting economic trends and potential crises.
This code combines the Purchasing Managers Index (PMI) data with two Simple Moving Averages (SMA) and some visual elements.
Let's break down how this indicator works:
1. Loading PMI Data:
The indicator loads data for the "USBCOI" symbol, which represents the PMI data. It fetches the monthly closing prices of this symbol.
2. Calculating Moving Averages:
Two Simple Moving Averages (SMAs) are calculated based on the PMI data. The first SMA, sma_usbcoi, has a length defined by the input parameter (default: 2). The second SMA, sma2_usbcoi, has a different length defined by the second input parameter (default: 14).
3. Color Coding and Thresholds:
The line color of the PMI plot is determined based on the value of the PMI. If the PMI is above 52, the color is teal; if it's below 48, the color is red; otherwise, it's gray. These threshold values are often used to identify specific conditions in the PMI data.
4. Crossing Indicator:
A key feature of this indicator is to determine if the PMI crosses the first SMA (sma_usbcoi) from top to bottom while also being above the value of 52. This is indicated by the crossedUp variable. This condition suggests a specific situation where the PMI crosses a short-term moving average while indicating strength (above 52).
5. Visual Elements:
A "💀" skull emoji is defined as skullEmoji.
The PMI is plotted on the chart with color coding based on its value, as described earlier.
The two SMAs are also plotted on the chart.
When the crossedUp condition is met (PMI crosses the first SMA from top to bottom while above 52), a skull emoji (indicating potential danger) is plotted at the top of the indicator window.
Lei
US Composite Leading Indicator (CLI)The US Composite Leading Indicator (CLI), normalized for the United States, closely mirrors the Conference Board "Leading Economic Index" (LEI). It offers unique insights into economic and financial dynamics.
The Composite Leading Indicator (CLI) is an economic tool designed to anticipate economic developments. It is created by aggregating and normalizing a wide range of economic and financial data from various sources.
The normalized data is then aggregated, and a composite indicator is calculated by taking a weighted average of individual indicators.
The CLI is used to provide early insights into the state of the economy and to anticipate future economic trends. It is particularly valuable for predicting economic downturns, including recessions.
The CLI is an essential tool for economists, governments, businesses, and investors seeking to understand economic trends and make informed decisions.
Key Features:
1. Early Warning: Just like its counterpart, the CLI indicator excels at offering early warnings about significant economic events, particularly economic crises. This makes it an indispensable asset for analysts and investors.
2. Recession Indicators: The moving average serves as an early warning system for potential economic recessions. When it crosses the indicator line from the bottom to the top while surpassing a predefined threshold (e.g., 101), it signals a potential crisis.
3. Market Impact: The CLI indicator provides valuable insights into the performance of financial markets, offering cues about indices such as the S&P 500, Nasdaq, Dow Jones, and more.
Why It Matters:
Understanding the US Composite Leading Indicator (CLI) indicator, normalized for the United States, is crucial for anticipating economic shifts and preparing for changes in financial markets. By analyzing a diverse array of economic factors, it provides a holistic view of economic well-being. Whether you're an investor or economist, this indicator can be an invaluable resource for staying informed about market trends and major economic developments.
Source:
www.data.oecd.org
TWO by Jchang274In statistics, a moving average is a calculation used to analyze data points by creating a series of averages of different subsets of the full data set. In finance, a moving average (MA) is a stock indicator that is commonly used in technical analysis. The reason for calculating the moving average of a stock is to help smooth out the price data by creating a constantly updated average price.
By calculating the moving average, the impacts of random, short-term fluctuations on the price of a stock over a specified time-frame are mitigated.
Rebuild this code, make it more easy to understand.
Multi-Sub by jchang274How it begin?
Traders and investors use market breadth in order to assess the index’s overall health. Market breadth can be a reliable, if not an accurate, indicator of an upcoming price rise in the index. Similarly, it can also provide early warning signs for a future price decline.
What is it？
Market breadth indicators analyze the number of stocks advancing relative to those that are declining in a given index or on a stock exchange.
Market breadth refers to how many stocks are participating in a given move in an index or on a stock exchange. An index may be rising yet more than half the stocks in the index are falling because a small number of stocks have such large gains that they drag the whole index higher.
How it works?
Market breadth studies attempt to uncover strength or weakness in the movements of an index that are not visible simply by looking at a chart of the index.
