timing by past inferences to present patterns, page-50

Hi Redb,

As I was saying in my previous post, I'm using the wave59 script for the Smart Money Index in the plotting, taking turns to isolate the dumb money flow and the smart money flow to plot them separately rather than as a composite smart money index. Unfortunately, as I indicated earlier, I can't read the code as the developers have blocked the code access. However, the chart is a 5 min intraday chart, with a 9 period smartmoney index and a smoothening factor of 2.

"Among sentiment indicators, this Index is unusual in that it combines the actions of the "dumb money" (as a negative contribution) and the "smart money" (as a positive contribution), with the two classes identified by the time of day that their trades are recorded."

Could the following be an acceptable interpretation of Hertler's explanation? re: the plotting of the smart money flow and dumb money flow - at any one time eg every 9 bar on a 5 minute chart, you can find out whether the closing price of the period you are charting for is greater or smaller than the "typical" first half hour price, where the average of the high,low and close ( "G" in this case ) is typically defined as G i.e.( H+L+C/3)=G . If it is greater than G, it is construed as positive contribution and it is added to cumulative G as smart money. If it is smaller, it becomes the negative contribution and is subtracted from cumulative G as dumb money.

Could we then plot these two running values (eg two separate columns in a spreadsheet) for the periods under observation eg every 9 bar or periods on a 5 min chart separately as smart money flow and dumb money flow intraday charts, bearing in mind that if we wish to smoothen it, we can perform further manipulation on the data or use a multiplier to enlarge the difference?

I'm painfully aware that the above description might be "mathematically lacking ", perhaps even laughable, and so your expert opinion , please, thanks.

Regards,

dascore