A Smoothed Smart Money Pressure Oscillator with a Signal Line

Summary

This oscillator derives a cumulative pressure measure from price changes on bars whose volume exceeds a moving average of volume. It smooths that measure using a user-selected moving-average period and method, then smooths it again to create a signal line. The display can also be inverted to make comparison with the price chart more convenient.

Its inputs control the underlying calculation period, both smoothing stages, and the inversion option. The document gives the calculation structure, but provides no trading thresholds, entry or exit rules, chart examples, or backtest results. High-volume bars contribute the close-to-close price change, while other bars contribute no change; the resulting measure is therefore sensitive to volume definitions and smoothing choices. It describes an indicator construction rather than evidence that the oscillator predicts price movements or supports a profitable strategy.

Key ideas

• The pressure measure accumulates close-to-close price changes only when volume exceeds its moving average.
• A configurable moving average smooths the pressure measure.
• A second configurable moving average produces the signal line.
• The chart can be inverted for visual comparison with price.
• The document provides no tested trading rules or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.