Institutional Intermarket Score PRO V3.3 (Presets)

This indicator is built on an unusual, non-traditional intermarket concept and is designed to provide market context rather than trading signals.


Institutional Intermarket Score – Indicator Description
Overview

The Institutional Intermarket Score is a contextual market indicator designed to provide a macro and intermarket perspective on the current market environment.
It aggregates information from multiple user-selected correlated and inversely correlated assets to determine whether the broader market context favors risk-on, risk-off, or neutral conditions.

This indicator is not a buy or sell signal.
It does not attempt to predict short-term price movements, entries, or exits.
Its sole purpose is to help the trader understand the broader market context before making any trading decisions.

Core Concept

Markets do not move in isolation.
Institutional participants continuously monitor multiple related markets to assess risk, liquidity, and conviction before deploying capital.

This indicator replicates that process by:

Monitoring several correlated assets (assets that tend to move in the same direction)

Monitoring several inversely correlated assets (assets that typically move in the opposite direction)

Combining their behavior into a single, normalized intermarket score

The result is a context filter, not a trading system.

Asset Groups

The indicator supports up to:

5 correlated assets

5 inversely correlated assets

All assets are fully configurable by the user and can be enabled or disabled individually.
Only active assets are included in all calculations.

Market State Evaluation

Each asset is evaluated using a Price vs VWAP relationship:

Price above VWAP → bullish state

Price below VWAP → bearish state

This binary state is used consistently across all assets to maintain clarity and robustness.



Intermarket Score
----------------------
The Intermarket Score represents the average directional alignment of all active assets and is normalized between -1 and +1.

Positive values indicate a risk-on environment

Negative values indicate a risk-off environment

Values near zero indicate balance, rotation, or uncertainty

The score is smoothed to reduce noise and highlight regime persistence rather than short-term fluctuations.



Confirmation Metric (X / Y)
----------------------------------
In addition to the score, the indicator calculates a confirmation ratio:

Y = total number of active assets

X = number of assets aligned with the current regime

Alignment is evaluated relative to the current regime:

In bullish regimes, assets above VWAP confirm

In bearish regimes, assets below VWAP confirm

This metric reflects the quality and conviction of the intermarket consensus.

High confirmation indicates broad agreement across markets.
Low confirmation indicates divergence, uncertainty, or fragile conditions.


Heatmap
-----------
A compact heatmap visually displays the state of each individual asset:

Green indicates alignment with the regime

Red indicates opposition

Neutral indicates inactive assets

This allows immediate identification of:

Which markets are confirming

Which markets are diverging

Whether consensus is broad or fragmented



Intended Use
----------------
This indicator is designed to be used:

Before evaluating trade setups

As a filter, not a trigger

In combination with price action, structure, and risk management

Typical applications include:

Avoiding trades against the broader market context

Distinguishing strong trends from fragile moves

Identifying periods of institutional alignment or hesitation

What This Indicator Is Not

It is not a buy or sell indicator

It does not provide entry or exit signals

It does not predict price direction on its own

It does not guarantee profitable trades

Any trading decisions remain entirely the responsibility of the user.

Summary

The Institutional Intermarket Score provides a high-level market image based on assets selected by the user.
It reflects context, alignment, and conviction, not timing.

Used correctly, it helps traders avoid low-quality trades, understand when markets are aligned or fragmented, and make decisions with greater awareness of the broader environment.

It is a decision support tool, not a trading system.


This indicator, is still evolving and its structure will continue to develop as new insights are tested...