An easy way to track what big money and market makers are doing in the markets. The Big Money Flow & Drift Oscillator is best suited as a trend indicator, estimating what way the market will drift on low volume and what way it will move on large volume.
This oscillator is composed of two lines, the Big Money Flow and Drift Oscillator. The Big Money Flow line gives the average percentage return of the asset when the volume is greater than the EMA of volume, showing that big money is making moves in the market. The Drift Oscillator gives the average percentage return of the asset when the volume is less than the EMA of volume, where pricing is done by small money and market makers.
By default, between the two lines, there is a color fill, determined based on the following logic: BMF > drift and BMF > 0: Yellow drift > BMF and drift > 0: Beige BMF > drift and BMF < 0: Orange drift > BMF and drift < 0: Red
hi there, was wondering , how would i go about setting an alert just for when on for the colours on the cloud changes, i.e if yellow or baige etc to be notified
Rehman288
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how to use it?
spiritualhealer117
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@Rehman288, It really depends on your trading strategy. You can read both lines in relation to each other, or in relation to zero. Generally speaking, if both lines are above 0, it means the movement has been very bullish for small investors and large investors, which may be good for short-term gains, but can also be a good indicator that a longer-term reversal is coming. On the other hand, if both are below 0, then it is bearish in the short term, but may be bullish in the long term as it can show that a movement has overextended. Otherwise, it can be used to make an educated guess as to how a price may move on small volume or big volume.