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Institutional Flow Engine - MEI and Execution Pressure

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Description:

This indicator is NOT based on traditional momentum oscillators.
It is built to measure how efficiently price moves and who controls the auction inside every candle.

Instead of chasing signals, this tool focuses on market structure behavior used by professional money.

📊 Indicator Explanation — How It Works

This indicator analyzes how price moves, not just where it moves 📈
It focuses on flow behavior and auction dynamics, not traditional lagging oscillators.

It is built using two core components:

⚙️ Market Efficiency Index (MEI)

MEI measures how much of the candle range represents real directional movement.

🔹 High MEI = Clean movement
→ Strong displacement
→ Low noise
→ Institutional participation

🔹 Low MEI = Inefficient movement
→ Consolidation
→ Absorption
→ Market indecision

In simple terms:
👉 MEI shows movement quality.

⚖️ Execution Pressure Index (EPI)

EPI measures who dominated the candle execution.

🔹 Close near the high
→ Buyers controlled the auction 🟢

🔹 Close near the low
→ Sellers controlled the auction 🔴

🔹 Neutral close
→ Balanced auction ⚪

In simple terms:
👉 EPI shows who won the candle.

🔗 How MEI and EPI Work Together

Both metrics should always be read together:

🟢 MEI rising + EPI positive
→ Clean buying pressure
→ Strong bullish flow

🔴 MEI rising + EPI negative
→ Clean selling pressure
→ Professional bearish execution

⚠️ MEI falling + EPI changing direction
→ Transition phase
→ Possible absorption
→ Market slowing down

This combination allows traders to identify:

✔ Trend strength
✔ Flow quality
✔ Market transitions
✔ Fake breakouts
✔ Exhaustion zones

🧠 Important Usage Note

This indicator is designed for market reading, not signal chasing.

Always combine with:

📌 Higher timeframe structure
📌 Key price levels
📌 Market context

Price is the effect.
Flow is the cause.

Penafian

Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.