The Smart Money Index (SMI) shows investors’ mood and is based on intraday price patterns.
Most traders (who are emotional and sensitive to news) overreact to the beginning of the trading day because of night news and economic data. Smart, experienced investors start trading after a while, while having the opportunity to evaluate the market.
The indicator allows you to assess the effectiveness of the market in a few hours from the beginning of the trading day.
It has two parameters:
Open hour – the beginning of the trading day (after the opening of the day)
Session length – the length of the measured trading session (after the beginning of the trading day)
