WRESBAL ROC Oscillator (Clean)

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.