PROTECTED SOURCE SCRIPT
Smart Volume Imbalance (SVI) — Lower Panel (MNQ tuned)
How to use & interpret (quick guide — tuned for MNQ)
What SVI shows
SVI > 0 — price move is directionally efficient with supportive volume (bullish smart flow).
SVI < 0 — price move is directionally efficient with selling pressure (bearish smart flow).
Large |SVI| (default threshold ±1.5) indicates institutional-strength moves worth respecting.
Absorption (orange/yellow marker): high volume but small candle body → potential smart accumulation/distribution (often precedes directional moves).
Primary signals
Entry (momentum): SVI crosses above +svThresh on pullbacks aligned with trend (use price structure to confirm).
Fade / Short: SVI falls below -svThresh at or near resistance, especially with bearish divergence.
Divergence: Price makes higher high but SVI makes lower high → likely smart-money sell; be cautious.
Default parameter reasoning for MNQ
volLen = 20, spreadLen = 20 — balances responsiveness and noise for a fast future.
normLen = 50, smoothLen = 8 — reduces tick noise but still responsive to MNQ spikes.
absorbVolMul = 1.8 — flags volume ~80% above average as significant; tweak if your data source reports higher/lower baseline.
Tuning tips
If you see too many false signals, increase normLen or smoothLen (more smoothing).
If you want earlier signals (more noise), lower smoothLen and normLen.
For lower-timeframes (1s/1m) you may need shorter SMAs; for higher-timeframes (5m+) defaults often work well.
Practical workflow
Use SVI in a separate lower panel while trading MNQ on your preferred timeframe (1m–5m are common).
Combine SVI with structure: only take bullish SVI signals above a prior structure support / after CHoCH, etc.
Watch absorption zones near highs/lows — they often signal where smart money is stepping in/out.
What SVI shows
SVI > 0 — price move is directionally efficient with supportive volume (bullish smart flow).
SVI < 0 — price move is directionally efficient with selling pressure (bearish smart flow).
Large |SVI| (default threshold ±1.5) indicates institutional-strength moves worth respecting.
Absorption (orange/yellow marker): high volume but small candle body → potential smart accumulation/distribution (often precedes directional moves).
Primary signals
Entry (momentum): SVI crosses above +svThresh on pullbacks aligned with trend (use price structure to confirm).
Fade / Short: SVI falls below -svThresh at or near resistance, especially with bearish divergence.
Divergence: Price makes higher high but SVI makes lower high → likely smart-money sell; be cautious.
Default parameter reasoning for MNQ
volLen = 20, spreadLen = 20 — balances responsiveness and noise for a fast future.
normLen = 50, smoothLen = 8 — reduces tick noise but still responsive to MNQ spikes.
absorbVolMul = 1.8 — flags volume ~80% above average as significant; tweak if your data source reports higher/lower baseline.
Tuning tips
If you see too many false signals, increase normLen or smoothLen (more smoothing).
If you want earlier signals (more noise), lower smoothLen and normLen.
For lower-timeframes (1s/1m) you may need shorter SMAs; for higher-timeframes (5m+) defaults often work well.
Practical workflow
Use SVI in a separate lower panel while trading MNQ on your preferred timeframe (1m–5m are common).
Combine SVI with structure: only take bullish SVI signals above a prior structure support / after CHoCH, etc.
Watch absorption zones near highs/lows — they often signal where smart money is stepping in/out.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.