MMRI is a powerful tool for gauging stock market risk.
Developed by financial analyst and trader Gregory Mannarino, the MMRI uses a simple formula to calculate a
risk score for the stock market.
The formula MMRI is: DXY * US10Y / 1.61
50-100 = LOW RISK
100-200 = MODERATE RISK
200-300 = HIGH RISK
300+ = EXTREME RISK
This graph displays the daily MMRI values for the past year. It provides a clear picture of how the indicator has fluctuated over time and can be used to analyze market conditions.
DXY, also known as the US Dollar Index, is a measure of the value of the US dollar relative to a basket of other currencies. It is used as an input in the MMRI formula because changes in the value of the dollar can have a significant impact on the stock market. US10Y, or the 10-year Treasury yield, is the interest rate at which the US government borrows money for a 10-year period. It is also an important input in the MMRI formula because changes in interest rates can affect the stock market.
By combining these two indicators, the MMRI provides a comprehensive view of the current market conditions. The MMRI ranges from 50-400, and a high value indicates a high level of risk in the market, while a low value indicates a low level of risk. This allows investors and traders to make more informed decisions about their investments and to better manage their risk. Additionally, the MMRI is updated regularly throughout the trading day, providing real-time information that can be used for intraday trading decisions. Overall, the MMRI is a valuable tool for anyone looking to navigate the stock market and manage their investment risk.
If you're interested in learning more about the Mannarino Market Risk Indicator (MMRI), check out this video by its creator, Gregory Mannarino. In it, he provides a detailed overview of the indicator and how it's used to gauge stock market risk. You can watch the video here.
It is important to note that it's always good to do your own research and seek professional advice before making any investment decisions.
Thanks to TradersChoice.net