Sophistication Gauge

The Sophistication Gauge works under the principles of how big money builds and exits positions. They do so very carefully by trying to influence the price as little as possible before their position has been established or exited so that they can get the best average price. There are various ways this can be achieved, most obviously this is done by executing the bulk of orders during technical areas and time periods of high volume. There are services exclusively for whales which specialize on this and this is what the Sophistication Gauge is designed to detect.

Retail traders, even in large groups, do not have the capital or cohesive strategy to trade in this way over any significant period of time, particularly on highly liquid assets. The Sophistication Gauge determines, through the behaviour of the chart, what type of actor is likely to be behind the trade. This can be extremely useful for identifying when sophisticated players are making moves so that you, most importantly, do not try to fight them.

The Sophistication Gauge does not signal which direction to trade, simply that there is accumulation or distribution occuring under the hood.