HPotter

Smart Money Index (SMI)

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. The indicator is based on intra-day price patterns.
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 a lot of buying on market orders and short covering at the opening.
Smart, experienced investors start trading closer to the end of the day having the opportunity to evaluate market performance.
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 , DJIA, etc.)

The SMI sends no clear signal whether the market is bullish or bearish . There are also no fixed absolute or relative readings signaling
about the trend. Traders need to look at the SMI dynamics relative to that of the market. If, for example, SMI rises sharply when the
market falls, this fact would mean that smart money is buying, and the market is to revert to an uptrend soon. The opposite situation
is also true. A rapidly falling SMI during a bullish market means that smart money is selling and that market is to revert to a downtrend
soon. The SMI is, therefore, a trend-based indicator.
Some analysts use the smart money index to claim that precious metals such as gold will continually maintain value in the future.
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//  Copyright by HPotter v1.0 10/06/2014
// Attention:
// If you would to use this indicator on the ES, you should have intraday data 60min in your account.
//
// 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.
// 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 a lot of buying on market orders and short covering at the opening. 
// Smart, experienced investors start trading closer to the end of the day having the opportunity to evaluate market performance.
// 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, DJIA, etc.)
//
// The SMI sends no clear signal whether the market is bullish or bearish. There are also no fixed absolute or relative readings signaling 
// about the trend. Traders need to look at the SMI dynamics relative to that of the market. If, for example, SMI rises sharply when the 
// market falls, this fact would mean that smart money is buying, and the market is to revert to an uptrend soon. The opposite situation 
// is also true. A rapidly falling SMI during a bullish market means that smart money is selling and that market is to revert to a downtrend 
// soon. The SMI is, therefore, a trend-based indicator.
// Some analysts use the smart money index to claim that precious metals such as gold will continually maintain value in the future.
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study(title="Smart Money Index (SMI)", shorttitle="Smart Money Index")
xcloseH1 = security(tickerid, "60", close)
xopenH1 =  security(tickerid, "60", open)
nRes = nz(nRes[1], 1) - (open - close) + (xopenH1 - xcloseH1)
plot(nRes, color=green, title="SMI")

التعليقات

Hi
What is the best time frame to use this indicator?

Thanks
+10 رد
Tested on TSLA, but the SMI lines seems almost the same as the RSI line. Where is the crucial difference? tnx!
+4 رد
This works really well with the SPY! TY
+4 رد
thanks. how can i get this? i dont see make it mine button
+3 رد
This is not the real Smart Money Index (SMI).

The real basic formula for SMI is:

Today's SMI reading = yesterday's SMI – opening gain or loss + last hour change

For example, the SMI closed yesterday at 10000. During the first 30 minutes of today's trading, the DJIA has gained a total of 100 points. During the final hour, the DJIA has lost 80 points. So, today's SMI is 10000 – 100 + -80 = 9820.
+2 رد
Is this also for BTC???
+1 رد
Hello, nice Post!!!
how can I set up the SMI on my chart?
tks
+1 رد
HPotter lpcesar
Use "make it mine" button and then it will be script available to you. Just open source code and make Save. After looking for it in the Custom scripts.
رد
lpcesar HPotter
tks
رد
louai HPotter
@HPotter, why does it move against price action in shorter time intervals? And what is the calculation.
رد
الصفحة الرئيسية منصة الأسهم منصًة العملات منصّة العملات الرقمية جدول الأعمال الاقتصادي كيف تعمل مميزات الرسم البياني أسعار العضوية إحالة صديق قوانين الموقع مركز المساعدة حلول المواقع الإلكترونية والوسطاء الأدوات حلول الرسوم البيانية مكتبة الرسوم البيانية صغيرة الحجم المدوّنة والأخبار تويتر
ملف التعريف إعدادات الصفحة الشخصية الحساب وإعداد الفواتير إحالة صديق تذاكر الدعم الخاصة بي مركز المساعدة التحاليل المنشورة المتابعين تُتابع رسالة خاصة المحادثة تسجيل الخروج