Smart Money Interest Index

Smart vs. Dumb Money Analysis

Tracks and compares the movements of smart money (informed investors) and dumb money (general public) within the market to identify potential investment signals.

Relative Strength Index (RSI) Based Ratios

Utilizes RSI for both smart and dumb money to create a ratio that indicates buying or selling pressures.

Dynamic Normalization

Employs a long-term peak normalization over a customizable period to ensure the index remains relevant regardless of market conditions.

Visual Thresholds and Signals

Highlights significant shifts in market dynamics with color-coded thresholds, making it easier to spot changes at a glance.

How to Use the Smart Money Interest Index:

Step 1

Adding the Indicator

Add the indicator to your favourites.

Customize the settings according to your analysis needs:

`Index Period`, `Volume Flow Period`, `Normalization Period`, `High Interest Threshold`

Step 2

Interpretation of the Index

Monitor the index plot; a rising index suggests increasing smart money interest, potentially indicating a buying opportunity.

A value above the high interest threshold (in yellow) highlights significant interest by smart money, suggesting a good time to buy.