ViLiQ

Reading the VILIQ flow graph

Global liquidity · lesson 1

25 minute read60 VILIQ Points

By the end
Interpret node pressure, edge strength, confidence and measured lag, and explain what a broken edge means.

  • Macro +14
  • Market knowledge +8

The flow graph shows liquidity buckets and asset classes as nodes, with edges representing the relationships between them. Every element on it is a measurement, and knowing which measurement each element encodes is what makes it readable rather than decorative.

What each visual element encodes
ElementEncodes
Node value (−100 to +100)Net directional pressure from that node’s weighted factors
Node border intensityMagnitude of that pressure
Edge thicknessMeasured strength of the relationship in the current window
Edge opacityConfidence, derived from how tightly the two have co-moved
Edge direction and colourWhether capital pressure is building or retreating
Observed lagThe lead/lag in days measured from the data, not assumed

Node pressure is rescaled by the weight of the factors actually observed. If a node expects six inputs and only four are available, the reading is computed from those four and rescaled, rather than treating the two missing series as zeros. The data coverage figure beside the graph tells you how much of the expected input set was present.

Example — A thin, faint edge

The edge from equities to Bitcoin shows low thickness and low opacity. That means the two have not co-moved tightly in the current window and the confidence in the relationship is low. Concluding "equities are up so Bitcoin will follow" would be reading a relationship the graph is explicitly telling you is currently weak.

Common belief

"The graph shows what will happen next."

What is actually true

It shows measured pressure and measured relationships in the current window. Pressure building at a node is a description of conditions, not a forecast of price. The WHY panel beside it exists to make the drivers inspectable so you can disagree with the reading on specific grounds.

Glossary

Node pressure
Net directional capital pressure for an asset class, from −100 to +100.
Edge strength
How strongly the upstream node is pushing, combined with how tightly the two have co-moved.
Observed lag
The measured lead/lag between two series in the current window.
Data coverage
The share of expected factors actually available for the computation.

Check your understanding

0 of 3 answered

Pass mark 70%: at least 3 of 3 correct.

  1. 1.What does a thin, faint edge between two nodes mean?
  2. 2.A node expects six factors and only four are available. What does the engine do?
  3. 3.What is the status of the canonical transmission chain?

Challenge — Find the weakest link

Open the VILIQ Flow screen. Identify the edge with the lowest measured strength, record its nodes and its stated rationale, and explain what its weakness implies about the relationship right now.

What a good answer contains

  • Names the specific edge and records its measured values
  • Interprets low strength as a measured finding rather than missing data
  • States what conclusion should not be drawn given that weakness

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Put it to work

Read a market with what you just learned, then practise with simulated money. No real order is ever placed.

VILIQ provides market intelligence, research and educational information. It is not financial product advice and does not take your personal circumstances into account. Consider your own situation and seek licensed advice before making financial decisions.

VILIQ provides market intelligence, research and educational information. It is not financial product advice and does not take your personal circumstances into account. Consider your own situation and seek licensed advice before making financial decisions.

VILIQ is operated by LTM Trading Pty Limited (ACN 659 211 426), Australia.