MMI takes into account the below 7 factors to give a complete 360 degree picture of the emotions driving the market
- The 45 trading day rolling average and standard deviation of each of the components is calculated
- The current values of the indicators are compared with rolling averages to see how far they are from the mean, in standard deviation terms
- All components are normalized to bring everything on a scale of 0-100
- The final indicator value is calculated by giving equal weight to each of the components
Did this answer your question?