Smart Money Index Indicator
The Smart Money Index (SMI) is a powerful forex indicator used to gauge market sentiment and identify potential reversals by analyzing trading volumes and price movements indicative of institutional buying or selling. A common entry strategy involves looking for divergences between the SMI and price action; for example, if the price makes a new low while the SMI forms a higher low, it may signal a bullish reversal. Traders often wait for confirmation through additional indicators or price patterns before entering a trade, and it's essential to implement risk management strategies like stop-loss orders to protect against adverse market movements.