Insider Conviction Index
Insider Conviction Index (ICI)
The Insider Conviction Index (ICI) is a proprietary market sentiment indicator designed to track the real conviction of corporate insiders. Unlike traditional price charts, ICI analyzes the source of capital based on official SEC Form 4 filings. The index operates on a scale from -100 to +100, where extreme values signal periods of mass distribution or strategic accumulation by those who know their business from the inside out.
Breadth Score
The Breadth Score measures the level of consensus among insiders. Buying activity from 100 different directors across 100 different companies is a significantly stronger signal than one large purchase by a single insider. This metric filters out isolated anomalies and highlights the mass directional bias of the smart money.
Volume Score
This component compares the dollar volume of purchases and sales on a logarithmic scale. We use CPI Adjustment (Inflation Adjusted) to compare today's capital intensity with historical data. The Volume Score normalizes these amounts to show the real purchasing power of insider funds
Velocity Score
The Velocity Score acts as the "speedometer" of insider activity. It assesses the acceleration of net money flow relative to its 2-year average. This score identifies how sharply insider behavior has changed compared to their usual patterns, often serving as a precursor to significant market reversals.