Smart Money Proxy Index

Overview
The Smart Money Proxy Index (SMPI) is an educational tool that attempts to identify potential institutional-style behavior patterns using publicly available market data. This comprehensive tool combines multiple institutional analysis techniques into a single, easy-to-read 0-100 oscillator.

Important Disclaimer
This is an educational proxy indicator that analyzes volume and price patterns. It cannot identify actual institutional trading activity and should not be interpreted as tracking real "smart money." Use for educational purposes and combine with other analysis methods.

Inspiration & Methodology
This indicator is inspired by MAPsignals' Big Money Index (BMI) methodology but uses publicly available price and volume data with original calculations. This is an independent educational interpretation designed to teach smart money concepts to retail traders.

What It Analyzes
SMPI tracks potential "smart money" activity by combining:

• Block Trading Detection - Identifies unusual volume surges with significant price impact
  
• Money Flow Analysis - Volume-weighted price pressure using Money Flow Index
  
• Accumulation/Distribution Patterns - Modified On-Balance Volume signals
  
• Institutional Control Proxy - End-of-day positioning and control analysis
  

Key Features
– Multi-Component Analysis - Combines 4 different institutional detection methods
– BMI-Style 0-100 Scale - Familiar oscillator range with clear extreme levels
– Professional Visualization - Dynamic colors, gradient fills, and clean data table
– Comprehensive Alerts - Buy/sell signals plus divergence detection
– Fully Customizable - Adjust all parameters, colors, and display options
– Non-Repainting Signals - All alerts use confirmed data for reliability
– Educational Focus - Designed to teach institutional flow concepts

How to Interpret

• Above 80: Potential smart money distribution phase (bearish pressure)
  
• Below 20: Potential smart money accumulation phase (bullish opportunity)
  
• Signal Generation: Buy signals when crossing above 20, sell signals when crossing below 80
  
• Divergences: Price vs SMPI divergences can signal potential trend changes
  
• Volume Confirmation: Higher volume ratios strengthen signal reliability
  

Best Practices

• Timeframes: Works best on higher timeframes for institutional behavior analysis
  
• Confirmation: Combine with other technical analysis tools and market context
  
• Volume: Pay attention to volume confirmation in the data table
  
• Context: Consider overall market conditions and fundamental factors
  
• Risk Management: Not recommended as standalone trading system
  

Customizable Parameters

• Block Volume Threshold: Sensitivity for unusual volume detection (default: 2.5x average)
  
• SMPI Smoothing Period: Index calculation smoothing (default: 25 bars)
  
• Extreme Levels: Overbought/oversold thresholds (default: 80/20)
  
• Money Flow Length: MFI calculation period (default: 14)
  
• Visual Options: Colors, signals, and display preferences
  

Available Alerts

• Buy Signal: SMPI crosses above oversold level (20)
  
• Sell Signal: SMPI crosses below overbought level (80)
  
• Extreme Levels: Alerts when reaching overbought/oversold zones
  
• Divergence Detection: Bullish and bearish price vs SMPI divergences
  

Educational Purpose & Limitations
This indicator is designed as an educational proxy for understanding institutional flow concepts. It analyzes publicly available price and volume data to identify potential smart money behavior patterns.

• Cannot access actual institutional transaction data
  
• Signals may be slower than day-trading indicators (intentionally designed for institutional timeframes)
  
• Should be used in conjunction with other analysis methods
  
• Past performance does not guarantee future results
  

What Makes This Different
Unlike simple volume or momentum indicators, SMPI combines multiple institutional analysis techniques into one comprehensive tool. The multi-component approach provides a more robust view of potential smart money activity.