The Elliss Big Money Index (EBMI) is a unique technical indicator. It is the only FORWARD forecasting FUNDAMENTAL indicator and it is only available in the Australian Stock Market.
The EBMI is a measure of INSTITUTIONAL BUYERS in an individual stock. Institutional buyers can be identified in the market. However, they are NOT a measure of volume as we will see. We can identify them via transaction size. Tracking the transaction markets from the ASX allows us to identify individual LARGE BUYERS in the market. We can identify them as BIG MONEY. We know a few things about BIG MONEY:
We can call these BIG MONEY buyers - lucky guys. As we will see, there are literally thousands of examples where they have just bought in at the right time - just before the stock goes up.
EBMI is not full-proof. It does not detect Institutions where they buy in small regular parcels as individual transactions. This is more expensive for an institution but if they do this we will not detect them with this indicator.
There is NO EBMI SELL indicator. Institutions do go to the trouble of breaking up sell activity into small parcels and the EBMI sell (which does exist) is far less effective than the EBMI Buy. The primary reason that Big Money Investors go to more trouble and expense to hide Sell parcels is that the true definition of Inside trading is not buying before good news its Selling before bad news.