What is smart money index?

Smart money index. Smart money index (SMI) or smart money flow index is a technical analysis indicator demonstrating investors' sentiment. The index was invented and popularized by money manager Don Hays. The indicator is based on intra-day price patterns.

What does SMI stand for?

Smart money index. Smart money index (SMI) or smart money flow index is a technical analysis indicator demonstrating investors' sentiment.

What is smart money?

Smart money refers to the capital that institutional investors, central banks, and other financial institutions or professionals control. Smart money is a collective force which has the ability to move markets. It is believed that smart money has a better chance of success than retail investors.

What is “dumb money” and “Smart Money”?

Trades made at the beginning of the day are labeled the “dumb money,” whereas those placed at the end are called the “smart money.” This isn’t actually a slight against early day traders. Instead, the index tracks intraday price patterns based on investor emotions.