Investor_Preference_Index - indicator for MetaTrader 5

Investor_Preference_Index – indicator MetaTrader 5

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Investor Preference Index was discussed in the “Technical Analysis of Stocks & Commodities” magazine in December, 1997, page 19. The article was written by Cyril V. Smith Jr.
Initially, this indicator, which was used as the long-term stock market investment tool, compared the efficiency of S&P 500 with the New York Stock Exchange to measure sentiment. The theory suggests that investors prefer certain types of investment.

The indicator has five input parameters:

  • Instrument – the name of the financial instrument
  • ROC period – period for calculating the price rate of change
  • Fast smoothing period – the period of the fast smoothing
  • Slow smoothing period – the period of the slow smoothing
  • Result smoothing period – the period of the resulting smoothing

Calculation:

IPI =100.0*(Result smoothing period * SMA(B2, Result smoothing period)+1.0)

where:

B2 = SMA(B1, Fast smoothing period) - SMA(B1, Slow smoothing period)
B1 = ROC1 - ROC2

ROC1 - the current symbol's price rate of change over the ROC period
ROC2 - the 'Instrument' symbol's price rate of change over the ROC period

ROC = 100.0 * Log(Close - Log2) / Log2

Log2 = Log(Close[ROC period])

Please note that in order for the indicator to display correctly, historical data for the ‘Instrument’ symbol are needed, which can lead to a delay in displaying the oscillator line during the first launch or symbol changed.

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Fig. 1. Investor Preference Index GBPUSD relative to EURUSD


Fig. 2. Investor Preference Index GBPUSD relative to USDJPY


Fig. 3. Investor Preference Index GBPUSD relative to AUDCAD


Fig. 4. Investor Preference Index GBPUSD relative to USDRUB


Investor_Preference_Index – indicator MetaTrader 5
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