OPEN-SOURCE SCRIPT
smart money
//version=5
indicator("Smart Money Algorithm", overlay=true)
// Input parameters
length = input.int(20, title="Lookback Period")
volumeThreshold = input.float(1.5, title="Volume Threshold (Multiplier)")
deltaThreshold = input.float(0.7, title="Cumulative Delta Threshold")
// Calculate average volume
avgVolume = ta.sma(volume, length)
// Detect unusual volume spikes (potential smart money activity)
volumeSpike = volume > avgVolume * volumeThreshold
// Cumulative Delta (Buying/Selling Pressure)
buyVolume = volume * (close > open ? 1 : 0)
sellVolume = volume * (close < open ? 1 : 0)
cumulativeDelta = ta.cum(buyVolume - sellVolume)
// Normalize cumulative delta for visualization
normalizedDelta = cumulativeDelta / ta.highest(cumulativeDelta, length)
// Plot volume spikes
plotshape(series=volumeSpike, title="Volume Spike", location=location.belowbar, color=color.new(color.blue, 0), style=shape.labelup, text="SPIKE")
// Plot cumulative delta
deltaColor = normalizedDelta > deltaThreshold ? color.green : normalizedDelta < -deltaThreshold ? color.red : color.gray
plot(normalizedDelta, title="Cumulative Delta", color=deltaColor, linewidth=2)
// Highlight key levels (support/resistance)
supportLevel = ta.lowest(low, length)
resistanceLevel = ta.highest(high, length)
plot(supportLevel, title="Support", color=color.green, linewidth=1, style=plot.style_circles)
plot(resistanceLevel, title="Resistance", color=color.red, linewidth=1, style=plot.style_circles)
// Alerts for smart money signals
if (volumeSpike and normalizedDelta > deltaThreshold)
alert("Smart Money Buy Signal", alert.freq_once_per_bar)
if (volumeSpike and normalizedDelta < -deltaThreshold)
alert("Smart Money Sell Signal", alert.freq_once_per_bar)
indicator("Smart Money Algorithm", overlay=true)
// Input parameters
length = input.int(20, title="Lookback Period")
volumeThreshold = input.float(1.5, title="Volume Threshold (Multiplier)")
deltaThreshold = input.float(0.7, title="Cumulative Delta Threshold")
// Calculate average volume
avgVolume = ta.sma(volume, length)
// Detect unusual volume spikes (potential smart money activity)
volumeSpike = volume > avgVolume * volumeThreshold
// Cumulative Delta (Buying/Selling Pressure)
buyVolume = volume * (close > open ? 1 : 0)
sellVolume = volume * (close < open ? 1 : 0)
cumulativeDelta = ta.cum(buyVolume - sellVolume)
// Normalize cumulative delta for visualization
normalizedDelta = cumulativeDelta / ta.highest(cumulativeDelta, length)
// Plot volume spikes
plotshape(series=volumeSpike, title="Volume Spike", location=location.belowbar, color=color.new(color.blue, 0), style=shape.labelup, text="SPIKE")
// Plot cumulative delta
deltaColor = normalizedDelta > deltaThreshold ? color.green : normalizedDelta < -deltaThreshold ? color.red : color.gray
plot(normalizedDelta, title="Cumulative Delta", color=deltaColor, linewidth=2)
// Highlight key levels (support/resistance)
supportLevel = ta.lowest(low, length)
resistanceLevel = ta.highest(high, length)
plot(supportLevel, title="Support", color=color.green, linewidth=1, style=plot.style_circles)
plot(resistanceLevel, title="Resistance", color=color.red, linewidth=1, style=plot.style_circles)
// Alerts for smart money signals
if (volumeSpike and normalizedDelta > deltaThreshold)
alert("Smart Money Buy Signal", alert.freq_once_per_bar)
if (volumeSpike and normalizedDelta < -deltaThreshold)
alert("Smart Money Sell Signal", alert.freq_once_per_bar)
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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