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.
Remove from Favorite Scripts Add to Favorite Scripts
////////////////////////////////////////////////////////////
//  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.
////////////////////////////////////////////////////////////
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")
DONATE/TIP

BTC: 1Lo1GoTNsPbrjGAgPgF4MYZPhBFdoVHaTm
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.
Reply
thanks. how can i get this? i dont see make it mine button
+1 Reply
Tested on TSLA, but the SMI lines seems almost the same as the RSI line. Where is the crucial difference? tnx!
Reply
Thanks HP. This is one I use to use and forgot about. Appreciate your sharing it.
Reply
You are welcome
Reply
Nice Indy HP. Can an alert be added for % movement (of the current candle, at the close of the current candle)?
Reply
toxguy749s toxguy749s
To clarify further, I'm looking for the ability to choose a percent threshold and set an alert (positive or negative) on the indicator. I'd like the ability to be alerted if current price candle causes indicator to move beyond my preset threshold.
Reply
louai HPotter
@HPotter, why does the smi. Move up on time frame and it moves slow during a shorter time frame
Reply
@louai, It is use 60min data for calculating.
Reply
tuandq30 HPotter
@HPotter, Chao him he could help me write this indicator on AmiBroker 6 no I do not write this indicated if you please write me thank tuandq30gmail.com email
Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out