Smart Money OscillatorSmart Money Oscillator
Class : oscillator
Purpose : intraday
Period : 15 min – 1 hour
Idea of the Indicator
Smart Money Oscillator is the next step in evolution of oscillators. It uses regression analysis technics to calculate the theoretical price of the asset and compare it with the actual price. This price difference is used to define whether current prices are overbought or oversold.
“Smart Money Oscillator” is very volatile and provide much more signals than traditional oscillators like RSI or Stochastic. It can be used for active trading in volatile assets like Nasdaq index.
Structure of the Indicator
Indicator consists of two oscillatory lines: main (blue colored) and signal (red colored). Overbought and oversold zones are indicated with black dotted horizontal lines.
Rules of trading
Rules of trading are typical for oscillators.
• When the oscillatory line enters the overbought zone – long positions should be closed and after line reversal short position should be opened.
• When the oscillatory line enters the oversold zone – short positions should be closed and after line reversal long position should be opened.
Signal line is used to reduce the level of noise in the oscillatory line dynamics.
Access to the indicator
Please address all questions about this indicator (including access to it) in private messages.
