In any market there are two major sets of participants, Retail traders (like you & I) who command relatively small amounts of capital and typically enter and exits positions quickly, and then Institutional Traders (sometimes referred to as whales) who command large amounts of capital and dictate the overall trend of the market but enter and exit positions slowly.
In this indicator we look at the distinct volume of these two sets of traders and use the net positions of this volume to determine if they are net long (Buying) in the market or net short (Selling).
When each set of traders are on opposite sides of the market (Retail are selling & Institutions are buying for example) it usually results in a battle and choppy price action... the majority of these battles are won by the Institutions as their large sums of money dictate the overall direction markets move.
Some of the best opportunities are when both sets of traders are on the same side of the market & this is where we see real momentum enter the market with quick price moves.
Hi @JoelWarby! Thanks for creating this. When I look on this indicator now for same index you did ndx100 whichever timeframe I pick the Institutional volume is never short even threw a whole year back. that can't be the case especially with this index. Pls explain if this still works, and I just misunderstood something.
kennzo
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This is by far the best indicator I have so far come across, simplistic in its nature, yet powerful in results. After only one week of trading, I am already up over 12% on return. Thank you, Joel and Trading 101!
I'm struggling to use this. I click on the indicator and wait but nothing shows up on the chart. @JoelWarby
furqan.asghar
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Update, i had to refresh my window and it worked.
hiram_TRD
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Do you have this indicator for use with ninja trader?
audirspower
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not sure how this is calculated, but this is the best indicator I have seen so far in my trading carrer! well done!
PabloPabloPablo3
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Hey i just found your Indicator and i really like the Idea as i use sentiment regullary in my trading. Would you share what sources you use for input? And i have a question, I been looking at different time frames, and there are instances where for example the 1h shows bullish intstituonal sentiment for the last 3hours, but if you go down to 15m it will show bearish inst sentiment for the last 3 hours? Really cool project i will look at it for the next weeks and maybe implement it in my trading as i currently use another sentiment indicator that isnt as detailed as yours