The Investors vs Speculators indicator is a powerful tool that helps you gauge the balance between major players in the market (Investors) and everyday traders (Speculators). This ratio can provide valuable insights into market sentiment and potential price movements.
To get started with this indicator, you can customize it using two key parameters:
- Period: This defines the timeframe for your calculations.
- Accumulation/Distribution Method: Choose how you want to calculate the accumulation and distribution.
- Classical MT: This is the standard method used in MetaTrader.
- Trade Station: A method familiar to those who use Trade Station.
Calculation:
Delta = Investors - Speculators
Where:
- If VOL > AVG
Speculators = PrevSpeculators
Investors = PrevInvestors + AD
- Otherwise
Investors = PrevInvestors
Speculators = PrevSpeculators + AD
- If AD method = Classical MT
AD = ((Close - Low) - (High - Close)) / (High - Low) * VOL
- If AD method = Trade Station
AD = (Close - Open) / (High - Low) * VOL
AVG - SMA(VOL, Period)
VOL - tick volume
With this indicator, you'll be better equipped to make informed trading decisions by understanding the underlying market dynamics between investors and speculators.
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