A good question. My opinion is that Instos certainly do use...

A good question.

My opinion is that Instos certainly do use these basic momentum indicators to signify buy and sell positions, and when those levels are achieved, that's when the Insto's begin to make moves - and it's the Instos that (generally) move the share price, not little people like you and I.

However the portfolio sizes of Instos are SO large that they need to begin buying and selling before each of those indicators are actually reached so that they don't flood the market and ultimately de-value their own position.

Imagine if an Insto came along and put 1M units of APX up for sale at $30, the thing would crash because that level would never be broken due to the volume size and they would decrease their own returns. So they need to average in over a period of weeks or months and that momentum generally brings around the Share Price to trade near those moving average levels.

My 2c anyway. Would always appreciate feedback