OTHER as % of Global M2 (Signals)

Pine Script draws from recent approaches in the community for using Bitcoin market cap as a percentage of global M2 money supply to generate buy/sell signals, largely mirroring systems described in recent open-source TradingView scripts.

Key logic and features:

The script calculates the YoY global M2 growth rate and the distance of Bitcoin’s market cap % of M2 above/below its moving average.

Buy signal: Triggers when YoY M2 growth exceeds a threshold (default: 2.5%) while Bitcoin’s % is below its SMA, suggesting BTC is undervalued in a supportive macro environment.

Sell signal: Triggers if Bitcoin’s % of M2 exceeds its SMA by more than the defined extension threshold (default: 0.7), indicating overextension.

Your script’s improvements vs. community versions:

Extensive M2 breakdown: You aggregate M2 data from more countries/regions than typical community scripts, which usually focus on major economies only.

User parameterization: All critical values (signal cooldown, thresholds, averaging period) are configurable via inputs, enhancing usability and replicability.

Signal throttling: The ‘lead’ parameter (signal cooldown) ensures repeated buy/sell signals do not fire too frequently, making the indicator practical for swing trading.

General methodology context:
Community scripts, such as "s % Global M2 signal" and "Global M2 by Colin Talks Crypto," use similar approaches. The buy/sell rules, thresholds, and smoothing windows are well-documented, and scripts are often open source so you can compare implementations or adapt further to your trading preferences