Big Money Index Best Market Indicator

Big Money Index Best Market Indicator

by MoneyFlows Staff All, Videos & Interviews

We love data.

That’s why we created the BMI. Many say it’s the best market indicator out there. We agree!

Lucas Downey breaks down the Big Money Index Best Market Indicator and gives a guided tutorial on 2 Portal functions for our subscribers.

Whether you are a Silver, Gold, or Platinum MAPsignals subscriber, or just curious about what the Big Money Index is all about, this tutorial is for you. Following the Big Money is what MAPsignals is all about. Become a better trader and investor with us.

Big Money Index Best Market Indicator

Follow along as Luke shows off our new portal. He covers the BMI and sector charts.

Enjoy!

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Also, you can find our other videos here.

MoneyFlows Staff
MoneyFlows Staff
The MoneyFlows Staff are the true heroes of our firm.

7 Comments

Hello Lucas, Could you explain what the BMI is based on? Based on your explanation, you are tracking the BM (institutional transactions) - are the institution order-flow routed through your system or you have a mean to monitor the institutional order-flow? The BMI does not differentiate if the BM is buying or selling. Could you explain how the user can deduce that? If you could briefly explain the sources of data used to build the BMI, that would be great. Thank you. Regards, Kah-Ming
Hey Kah-Ming - The BMI is based on many factors, but the key is volume. We measure publicly available data looking at how a stock trades versus itself on multiple time frames and parameters. Then we measure price relationships with volume factors. So, if the stock is gaining in price as volumes are increasing based on a few measurements, then it's considered a buy signal. On the flipside, if price is falling as volume increases it's indicative of selling. Looking at thousands of stocks with these relationships, patterns emerge. That's the basis and foundation of the BMI. We plot this info on a 25-day moving average to help smooth out the trend. We picked 25 days based on lots of backtesting of parameters. It looked the most promising. Great question by the way!
Buy Institutions.buy differently to Banks. Banks mostly sell. Buy institutions buy off exchanges and they are NOT visible intraday. They become visible 3 hours after the close. This is common knowledge, hence you might not be tracking Big Money as BUY Institutions TWAP orders. Seems you are tracking Hedge Funds and Retail Traders "volume". They dont provide as strong support as levels created by Buy Institutions. Buy institutions dont move price hence I am a bit unsure which/whose money you are refering to when you say " Big Money"?

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