Investor_Preference_Index - MetaTrader 5 Script - MT4/MT5 Resources

Investor Preference Index discusses this issue on page 19 of the December 1997 issue of Technical Analysis of Stocks and Commodities magazine. This article was written by Cyril V. Smith Jr.

Originally, the indicator was used as a long-term stock market investing tool, comparing the efficiency of the S&P 500 to the New York Stock Exchange to gauge sentiment. This theory suggests that investors prefer certain types of investments.

The indicator has five input parameters:

 IPI =100.0*(result smoothing period* SMA(B2, result smoothing period)+1.0)
B2 = SMA(B1, fast smoothing period) - SMA(B1, slow smoothing period)
B1 = ROC1 - ROC2
ROC1 - the price change rate of the current trading symbol during the ROC period ROC2 - the price change rate of the "Instrument" symbol during the ROC period
ROC = 100.0 * Log(closing price - Log2) / Log2
Log2 = Log(closing price[ROC period])
Please note that in order for the indicator to display correctly, historical data of the "Instrument" symbol is required, which may cause delays in the display of oscillating lines during first launch or during symbol changes.


Figure 1. Investor Preference Index GBP/USD versus EUR/USD

Figure 2. Investor Preference Index GBP/USD vs USDJPY

Figure 3. Investor Preference Index GBP/USD vs AUD/CAD

Figure 4. Investor preference index for GBP/USD relative to USD/RUB
 Attachment download
 📎 investor_preference_index.mq5 (18.63 KB)
 Source: MQL5 #21834