OPEN-SOURCE SCRIPT
Smart Money Oscillator [Nic]
Updated
Smart money index (SMI) or smart money flow index is a technical analysis indicator demonstrating investors' sentiment. The index was invented and popularized by money manager Don Hays.[1] The indicator is based on intra-day price patterns.[2]
The main idea is that the majority of traders (emotional, news-driven) overreact at the beginning of the trading day because of the overnight news and economic data. There is also much buying on market orders and short covering at the opening. Therefore, the basic strategy is to bet against the morning price trend and bet with the evening price trend. The SMI may be calculated for many markets and market indices (S&P 500, Dow Jones, etc.)
This script turns the smart money index into an oscillator so you can determine the relative strength of the smart money.
The main idea is that the majority of traders (emotional, news-driven) overreact at the beginning of the trading day because of the overnight news and economic data. There is also much buying on market orders and short covering at the opening. Therefore, the basic strategy is to bet against the morning price trend and bet with the evening price trend. The SMI may be calculated for many markets and market indices (S&P 500, Dow Jones, etc.)
This script turns the smart money index into an oscillator so you can determine the relative strength of the smart money.
Release Notes
Fixed a variable.Release Notes
Fixed imageRelease Notes
Fixed image2Release Notes
Fixed imageRelease Notes
fixing image, why wont you updateRelease Notes
- Bug Fix- special thanks to tradingview.com/u/ragnarok628/ for code review
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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