BIG MONEY Indicator User Guide

What is the BIG MONEY Indicator?

The BIG MONEY Indicator is a custom technical tool designed to detect smart money inflows, i.e., when institutional or large investors quietly accumulate shares at low prices.

It uses a combination of long-term high/low price levels, volatility, and current price position to evaluate whether a stock is being accumulated during a bottoming phase.

---

Key Components

Variable	Description
VARA	A dynamic price ceiling used to detect abnormally low prices
VARD	Measures current volatility intensity
BIG_MONEY	Raw detection of smart money signals
BIG_MONEY1	Filtered output showing only strong signals (usually shown as thick red bars)

---

How to Read the Signals

Buy Signal (Accumulation Detected):

When you see thick red bars on the chart:

• The price is significantly below its long-term average range
• Volatility has increased sharply, suggesting shaking or quiet accumulation
• The algorithm estimates institutional accumulation may be happening

This is often a good buy-on-dip signal, especially for swing traders.

---

Avoid Trading When:

• No red bars appear (no accumulation detected)
• The stock is in a sideways or uncertain range
• The signal appears but there’s no reversal or follow-through in price (use volume confirmation)

---

Suggested Indicator Pairings

Indicator	Role
Moving Averages (MA20, MA60)	Confirm the overall trend direction
MACD, KDJ, RSI	Confirm oversold or bullish divergence
Volume	Volume spike with red bar = stronger signal

---

Real-World Application Tips

• Works best on large-cap or liquid stocks
• Especially useful at the end of a downtrend
• Consider scaling in when signals appear, and set proper stop-loss levels
• Confirm with candlestick patterns or news catalysts for higher accuracy

---

Summary (Mnemonic)

Red bars shine, big money signs. Buy the dip, let profits climb.

Let’s take a look at this indicator formula:

VAR1:=EMA(HHV(HIGH,500),21);
VAR2:=EMA(HHV(HIGH,250),21);
VAR3:=EMA(HHV(HIGH,90),21);
VAR4:=EMA(LLV(LOW,500),21);
VAR5:=EMA(LLV(LOW,250),21);
VAR6:=EMA(LLV(LOW,90),21);

VAR7:=EMA((VAR4*0.96+VAR5*0.96+VAR6*0.96+VAR1*0.558+VAR2*0.558+VAR3*0.558)/6,21);
VAR8:=EMA((VAR4*1.25+VAR5*1.23+VAR6*1.2+VAR1*0.55+VAR2*0.55+VAR3*0.65)/6,21);
VAR9:=EMA((VAR4*1.3+VAR5*1.3+VAR6*1.3+VAR1*0.68+VAR2*0.68+VAR3*0.68)/6,21);

VARA:=EMA((VAR7*3+VAR8*2+VAR9)/6*1.738,21);
VARB:=REF(LOW,1);
VARC:=SMA(ABS(LOW-VARB),3,1)/SMA(MAX(LOW-VARB,0),3,1)*100;
VARD:=EMA(IF(CLOSE*1.35<=VARA,VARC*10,VARC/10),3);
VARE:=LLV(LOW,30);
VARF:=HHV(VARD,30);

BIG_MONEY:EMA(IF(LOW<=VARE,(VARD+VARF*2)/2,0),3)/618,COLORBLUE;
BIG_MONEY1:IF(BIG_MONEY>0,BIG_MONEY,0),STICK,LINETHICK5,COLORRED;