Market Manipulation Index (MMI)

How it works

The CMI combines two mathematical models to assess market structure: a Sine-Fit Deviation Model and a Predictability-Based Model. The Sine-Fit Model compares actual price movement to a synthetic sine wave, measuring deviation from natural rhythm.

The Predictability Model uses a rolling linear regression between current and lagged prices to estimate predictability. Both models utilize an adaptive smoothing window based on Average True Range (ATR) to adjust for market volatility. The two normalized metrics are averaged to create a final CMI value scaled between 0 and 1

Why it may be useful

The CMI helps traders understand market integrity by revealing potential manipulation or structural instability. By quantifying the orderliness of price movements, it provides insights into market conditions that might not be apparent through traditional technical analysis.

Traders can use this tool to assess whether current market dynamics are conducive to their trading strategies. The indicator acts as a contextual filter, warning of potential risks and helping traders make more informed decisions about market entry and risk management

When to explore it

The CMI is most valuable during periods of market uncertainty or potential manipulation. It works best for traders seeking to understand underlying market structure before executing trades. In volatile markets, the indicator can help identify periods of increased risk or potential fakeouts.

Swing traders and day traders can use it to filter out trades during structurally unstable periods. The CMI is particularly useful when traditional technical indicators provide conflicting signals or fail to capture market complexity

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