Institutional Activity

The Institutional Activity metric aims to measure the level of activity of institutions in the market, with higher values indicating higher institutional activity.

This metric is inspired by Shalen's hypothesis and extended over a concept we named activity asymmetry.

Interpretation

High institutional activity on trending markets can potentially announce a reversal, institutions could be leaving the trend, eventually causing movements encouraging investors to reverse their positions.

Institutional activity during ranging markets can be caused by institutions accumulating positions, price levels with institutional activity can eventually be considered significant for the construction of support and resistance points.