IronRod SMI Histogram (Lower) [NPR21]

🔹 IronRod SMI Histogram (TOS-Style)
Overview

IronRod SMI Histogram is a refined, ThinkorSwim-faithful implementation of the Stochastic Momentum Index (SMI) designed for clarity, momentum strength, and chop detection.

This version focuses on:

• Clean, vibrant visuals
  
• Clear momentum direction
  
• Easy identification of trend vs. chop
  
• Smooth behavior across all timeframes and instruments
  

If you used SMI on ThinkorSwim, this will feel instantly familiar — but optimized for TradingView.

📊 What This Indicator Shows

1️⃣ SMI Line (Momentum Direction)

• Bright Green Line → Momentum strengthening upward
  
• Red Line → Momentum weakening / bearish
  
• The slope of the line reflects momentum strength, not just direction.
  

Steeper = stronger momentum
Flatter = momentum slowing

2️⃣ Histogram (Momentum Strength & Acceleration)

• Green Histogram → Bullish momentum
  
• Red Histogram → Bearish momentum
  
• Neutral Gray Histogram → Weak / indecisive momentum
  

Histogram height and thickness visually represent momentum acceleration or deceleration, making shifts easy to spot without staring at numbers.

3️⃣ Chop Zone (Market Regime Filter)

• [*Y]ellow Chop Band → Market is range-bound / choppy
  
• Outside the band → Momentum is strong enough to favor trend trades
  

This helps you avoid over-trading during low-probability chop and focus only when momentum matters.

🧠 How Traders Use It
✅ Trend Confirmation

1. Trade with the histogram color
   
3. Favor longs when:
   
5. SMI is rising
   
7. Histogram is green
   
9. Price aligns with your trend tools (EMA, VWAP, structure, etc.)
   
11. Favor shorts when:
    
13. SMI is falling
    
15. Histogram is red
    

✅ Momentum Shifts (Early Clues)

Watch for:

Histogram shrinking → momentum slowing

• Color fading to gray → loss of conviction
  
• Often precedes:
  
• Pullbacks
  
• Trend pauses
  
• Potential reversals
  

🚫 Chop Avoidance

When price and SMI stay inside the yellow chop zone, probability drops.

Best used as a filter:

“If SMI is chopping, size down or wait.”

🕒 Works On Any Market & Timeframe

• Futures
  
• Stocks
  
• Crypto
  
• Forex
  

Scales cleanly from 1-minute scalping to higher-timeframe swing trading.

🎯 Best Used With

• EMAs / VWAP
  
• Market structure (HH/HL, LH/LL)
  
• Supply & demand zones
  
• Volume or delta tools
  

This indicator is not meant to be a standalone signal generator — it’s a high-quality momentum confirmation tool.