Quick Start Guide
Installation
- Join our Discord Community
- Request access from the owner
- Open SMFA on TradingView
- Click "Add to Favorites" once authorized
- Apply to your chart (appears below price)
Default Settings
- Display Style: Histogram
- Adaptive Mode: Market Regime
- Timeframes: 5m, 15m, 30m, 1H, 195m, 1D
- Dashboard: Top Right
Key Trading Rules
- EXT+ → Prepare to SHORT
- EXT- → Prepare to LONG
- Extremes = Reversal signals!
- Multiple TF alignment = Strong signal
⚡ Critical Rule: Extreme states (EXT+ and EXT-) are REVERSAL signals, not continuation signals. When you see EXT+, the market is overheated and likely to reverse DOWN. When you see EXT-, the market is oversold and likely to reverse UP.
⚠️ Access Required: Smart Money Flow Analysis is a premium indicator. You must join our Discord community and receive authorization from the owner before you can use it on TradingView.
Core Concepts
What is Smart Money Flow?
Smart Money Flow (SMF) analyzes the relationship between price movement and volume to identify institutional activity. When large players accumulate or distribute positions, they leave traces in volume patterns that this indicator captures.
Price ↑
Rising
+
Volume ↑
Increasing
=
SMF Positive
Smart Money Buying
SMF Value Interpretation
| SMF Value | Meaning | Market Implication |
|---|---|---|
| Positive (Green) | Smart money flowing IN | Institutions accumulating |
| Negative (Red) | Smart money flowing OUT | Institutions distributing |
| Large Absolute Value | Strong flow intensity | Significant institutional activity |
| Near Zero | Balanced flow | Market equilibrium |
Key Thresholds:
- Strong Buy Zone: SMF > +1.0 (dynamically adjusted)
- Strong Sell Zone: SMF < -1.0 (dynamically adjusted)
- Extreme Zones: Calculated based on historical percentiles
Market State Classification
EXT+ Extreme Bullish
Warning: Market extremely overheated
Action: Prepare for reversal DOWN
DO NOT BUY!
STR+ Strong Bullish
Strong uptrend in progress
Action: Hold longs, watch for exhaustion
BULL Bullish
Healthy bullish conditions
Action: Look for long opportunities
BEAR Bearish
Healthy bearish conditions
Action: Look for short opportunities
STR- Strong Bearish
Strong downtrend in progress
Action: Hold shorts, watch for exhaustion
EXT- Extreme Bearish
Warning: Market extremely oversold
Action: Prepare for reversal UP
DO NOT SELL!
Parameter Settings
Display Settings
Display Style Options:
| Style | Best For | Description |
|---|---|---|
| Histogram | Day Trading | Clear visual bars, easiest to read |
| Heatmap | Trend Analysis | Shows intensity gradients |
| Classic Lines | Traditional | Includes signal line crossovers |
| Clean Zones | Minimalist | Professional, distraction-free |
Zone Method Options:
- Percentile (Recommended): Uses 75th/25th percentiles for dynamic zones
- Standard Deviation: Uses ±0.5 SD for zone boundaries
- Range-Based: Uses 70%/30% of historical range
Smart Money Flow Settings
Flow Analysis Period (Default: 35)
| Period Range | Sensitivity | Best For |
|---|---|---|
| 10-20 | High | Scalping, ultra-short term |
| 20-50 | Balanced | Day trading (recommended) |
| 50-100 | Low | Swing trading, position trading |
Noise Filter Coefficient (Default: 0.25)
- 0.1-0.2: More signals, may include noise
- 0.2-0.3: Balanced filtering (recommended)
- 0.3-0.5: Fewer but higher quality signals
Adaptive Intelligence
💡 Enable Adaptive Mode: Strongly recommended for automatic parameter optimization based on market conditions.
Adaptive Methods:
ATR Ratio
Adjusts based on current vs average volatility
- High volatility → Shorter period, higher filter
- Low volatility → Longer period, lower filter
Volatility Percentile
Uses historical volatility ranking
- >80th percentile → Extreme parameters
- <20th percentile → Conservative parameters
Market Regime (Recommended)
Intelligent market state detection
- Identifies: Trending/Ranging/Volatile
- Auto-selects optimal parameters
Signal Analysis
Primary Trading Signals
🔺 Strong Buy Signal
Trigger Conditions:
- SMF exits extreme oversold (EXT-)
- Bullish divergence detected
- Multiple timeframes confirming
Action: Consider long position
🔻 Strong Sell Signal
Trigger Conditions:
- SMF exits extreme overbought (EXT+)
- Bearish divergence detected
- Multiple timeframes confirming
Action: Consider short position
⚠️ Extreme State Interpretation (CRITICAL):
- EXT+ = Market EXTREMELY bullish = Prepare for BEARISH reversal
- EXT- = Market EXTREMELY bearish = Prepare for BULLISH reversal
- Remember: Extremes mark ENDINGS, not beginnings!
Divergence Analysis
Price: ↗️ Higher High
SMF: ↘️ Lower High
Result: 🐻 BEARISH DIVERGENCE
⚠️ Warning: Uptrend weakening
Key Points:
- Price rising but SMF falling = Smart money exiting
- Price falling but SMF rising = Smart money accumulating
- Divergences + extreme zones = High probability reversals
Multi-Timeframe Dashboard
Dashboard Column Guide
| Column | Description | How to Read |
|---|---|---|
| TF | Timeframe | 5 = 5 minutes, 60 = 1 hour, etc. |
| SMF | Current Value | Green = Positive, Red = Negative |
| Strength | Signal Strength % | >70% Extreme, 50-70% Strong, <50% Moderate |
| State | Market State | EXT+/- (Extreme), STR+/- (Strong), BULL/BEAR |
| Signal | Action Signal | BUY!/SELL! (Strong), B↑/S↓ (Moderate) |
💡 Professional Tip: When multiple timeframes show EXT+, the market is severely overheated across all timeframes. This is often followed by sharp corrections. Similarly, multiple EXT- states indicate extreme oversold conditions ripe for strong bounces.
Multi-Timeframe Alignment
Perfect Alignment Example:
┌──────┬───────┬──────┬────────┐
│ 5m │ -2.3 │ EXT- │ BUY! │
│ 15m │ -1.8 │ STR- │ BUY! │
│ 30m │ -1.5 │ BEAR │ B↑ │
│ 1H │ -1.2 │ BEAR │ --- │
│ 195m │ -0.8 │ BEAR │ --- │
│ 1D │ -0.5 │ NEUT │ --- │
└──────┴───────┴──────┴────────┘
✅ STRONG BUY OPPORTUNITY
Professional Trading Strategies
Strategy 1: Extreme Reversal Trading
Core Principle: Trade AGAINST extreme states. EXT+ = Sell opportunity, EXT- = Buy opportunity.
Long Entry Setup:
- Multiple timeframes showing EXT-
- Wait for first "BUY!" signal to appear
- Confirm with price action (reversal candle, support test)
- Enter on first pullback after signal
Short Entry Setup:
- Multiple timeframes showing EXT+
- Wait for first "SELL!" signal to appear
- Confirm with price action (reversal candle, resistance test)
- Enter on first rally after signal
Risk Management
- Stop Loss: Beyond extreme point
- Position Size: 1-2% risk
- Target: Opposite zone
Success Factors
- More extreme = Better reversal
- More timeframes = Higher probability
- Add divergence = Extra confirmation
Strategy 2: Multi-Timeframe Confluence
Entry Criteria:
| Timeframes Aligned | Signal Strength | Position Size | Win Rate |
|---|---|---|---|
| 2-3 Timeframes | Weak | 25% | ~60% |
| 4 Timeframes | Moderate | 50% | ~70% |
| 5 Timeframes | Strong | 75% | ~80% |
| 6 Timeframes | Extreme | 100% | ~85%+ |
Strategy 3: Day Trading Playbook
Morning Session:
- Check daily timeframe state first
- Focus on 5m, 15m, 30m alignment
- Trade WITH daily bias unless extreme
- First 30 minutes: Observe, don't trade
Optimal Entry Times:
- 9:45-10:15 AM: After initial volatility settles
- 2:00-3:00 PM: Afternoon trend emergence
- Avoid: First/last 15 minutes, lunch hour
Day Trading Rules:
- Never chase after EXT+ appears
- Never panic sell after EXT- appears
- Wait for extremes to develop, then fade them
- 2 losses = Stop for the day
Frequently Asked Questions
Q: What exactly do EXT+ and EXT- mean?
A: These are EXTREME states indicating market exhaustion:
- EXT+ = Extremely Bullish = Market is OVERHEATED = Prepare to SELL
- EXT- = Extremely Bearish = Market is OVERSOLD = Prepare to BUY
Remember: Extremes mark potential REVERSALS, not trend continuation!
Q: Why does price go up but SMF shows negative?
A: This indicates that while price is rising, volume isn't supporting the move. It suggests:
- Retail traders pushing price up
- Smart money is distributing (selling)
- False breakout likely
- Reversal imminent
Q: How do I handle conflicting timeframe signals?
A: Follow this hierarchy:
- Primary: Higher timeframe direction (Daily/4H)
- Secondary: Number of aligned timeframes
- Trigger: Lower timeframe for precise entry
- Conflict: When severely conflicted, stay out
Q: Best settings for crypto vs forex vs stocks?
| Market | Period | Filter | Special Notes |
|---|---|---|---|
| Crypto | 20-30 | 0.3-0.4 | Higher filter for 24/7 volatility |
| Forex | 35-50 | 0.2-0.3 | Standard settings work well |
| Stocks | 40-60 | 0.25-0.35 | Adjust for opening gaps |
🎯 Professional Trading Tips
- Extreme States Rule: ALWAYS fade extremes. EXT+ = Sell, EXT- = Buy
- Opening 30 Minutes: Signals unreliable due to overnight gaps
- News Events: Disable during major announcements
- Low Liquidity: Indicator less effective on thin markets
- Holiday Trading: Requires recalibration after long weekends
- Combine with Price Action: Support/resistance enhance signals
- The Golden Rule: When everyone is buying (EXT+), you should be selling
Master Institutional Order Flow
Join thousands of traders using SMFA to track smart money movements.