OPEN-SOURCE SCRIPT
ueuito Smart Money Flow + Volume Absortion
still improving...
Description
This indicator measures money flow and volume absorption to identify market direction, strength, and potential turning points. It combines price movement, volume, volatility, and candle structure to detect institutional activity.
Core Components
1. Money Flow Calculation
The indicator calculates a flow value based on price change multiplied by volume.
This value is normalized by average volume and then smoothed using EMA and WMA.
Positive flow → bullish pressure
Negative flow → bearish pressure
This is the main line plotted on the chart.
2. Momentum (Impulse Detection)
The script detects strong moves by comparing the current flow strength to its average.
When flow exceeds a defined threshold, it is considered an impulse move
These impulses represent strong participation, often linked to institutional activity
3. Trend Filter (EMA)
An optional EMA filter is used to align signals with the broader trend.
Buy signals only occur above the EMA
Sell signals only occur below the EMA
This helps reduce false signals in sideways markets.
4. Direction and Strength
The indicator classifies market conditions:
Bullish or bearish based on flow direction
Strong bullish/bearish when combined with impulse
Colors reflect this:
Strong bullish → bright green
Strong bearish → red
Weak conditions → softer colors
5. Volume Absorption Detection
This is a key feature of the indicator.
Absorption is detected using a scoring system based on:
High relative volume
Small candle body
Reduced price range
Flow away from neutral zone
If enough conditions are met, absorption is confirmed.
Bullish absorption → accumulation (buyers absorbing selling)
Bearish absorption → distribution (sellers absorbing buying)
6. Signal Generation
Signals occur when:
Flow changes direction
Momentum (impulse) is present
Trend conditions are met (if EMA filter is enabled)
Absorption confirms the move
Signals are displayed as triangles:
Up triangle → buy
Down triangle → sell
Signal strength is visualized by size and opacity.
7. Volatility Context (Heatmap)
A background heatmap highlights strong momentum zones:
Green → strong bullish activity
Red → strong bearish activity
This helps quickly identify high-activity areas.
Overall Functionality
This indicator is designed to:
Track real buying and selling pressure
Detect institutional activity through volume behavior
Identify high-probability entries using momentum and absorption
Filter noise using trend and volatility conditions
It works best in trending markets but includes filters to reduce noise in low-quality conditions.
Description
This indicator measures money flow and volume absorption to identify market direction, strength, and potential turning points. It combines price movement, volume, volatility, and candle structure to detect institutional activity.
Core Components
1. Money Flow Calculation
The indicator calculates a flow value based on price change multiplied by volume.
This value is normalized by average volume and then smoothed using EMA and WMA.
Positive flow → bullish pressure
Negative flow → bearish pressure
This is the main line plotted on the chart.
2. Momentum (Impulse Detection)
The script detects strong moves by comparing the current flow strength to its average.
When flow exceeds a defined threshold, it is considered an impulse move
These impulses represent strong participation, often linked to institutional activity
3. Trend Filter (EMA)
An optional EMA filter is used to align signals with the broader trend.
Buy signals only occur above the EMA
Sell signals only occur below the EMA
This helps reduce false signals in sideways markets.
4. Direction and Strength
The indicator classifies market conditions:
Bullish or bearish based on flow direction
Strong bullish/bearish when combined with impulse
Colors reflect this:
Strong bullish → bright green
Strong bearish → red
Weak conditions → softer colors
5. Volume Absorption Detection
This is a key feature of the indicator.
Absorption is detected using a scoring system based on:
High relative volume
Small candle body
Reduced price range
Flow away from neutral zone
If enough conditions are met, absorption is confirmed.
Bullish absorption → accumulation (buyers absorbing selling)
Bearish absorption → distribution (sellers absorbing buying)
6. Signal Generation
Signals occur when:
Flow changes direction
Momentum (impulse) is present
Trend conditions are met (if EMA filter is enabled)
Absorption confirms the move
Signals are displayed as triangles:
Up triangle → buy
Down triangle → sell
Signal strength is visualized by size and opacity.
7. Volatility Context (Heatmap)
A background heatmap highlights strong momentum zones:
Green → strong bullish activity
Red → strong bearish activity
This helps quickly identify high-activity areas.
Overall Functionality
This indicator is designed to:
Track real buying and selling pressure
Detect institutional activity through volume behavior
Identify high-probability entries using momentum and absorption
Filter noise using trend and volatility conditions
It works best in trending markets but includes filters to reduce noise in low-quality conditions.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.