The Smart Money uses proprietary indicators based on market internals to identify trade set-ups and directional alerts primarily in U.S. equity indexes and their related ETFs but also in GDX and USO.
The service is hosted by Princely Mathew, who has developed indicators using high/low data from the New York Stock Exchange. The indicators track the cumulative value of new highs minus new lows over varying time periods on the NYSE to determine whether the indexes are trending up or down.
These indicators are:
Members of The Smart Money receive directional alerts in the Emini S&P 500, as well as in the GDX and USO, based on these indicators, with occasional alerts based on the Secret Indicator Combo (SIC).
When any two of the three short- term indicators (Micro1, Micro2, or SIC) are on a buy or a sell signal, an update is issued indicating a long or short Composite Signal in the ES.
Based on this Composite Signal, whose status and historical table are presented in Princely's morning and evening ES Reports, Princely also provides Trade Signals in index ETFs such as SPY and QQQ and their related short and ultra ETFs.
The Smart Money also features proprietary indicators known collectively as the Razzmatazz Indicators. "Razz" analysis is applied to the GDX, Bonds & USO in a daily Razz Update with additional analysis on the ES included in the morning ES Report. The Razz Indicators track options trading activity and rise (and turn bullish on the market) when options traders (following the "herd") put their money into bearish bets, and vice versa.
The premise is that smart money sells premium on options while dumb money buys them. This does not always have to be the case but is true more than often. There is a reason most options expire worthless. So when open interest in ES puts increases relative to the calls, it means that the smart money is bullish on the market while the dumb money is not. So they are using the option selling machine to sell puts to the public and pocket the premium. Thus, the Put/Call Ratio (PCR) rises, hence implying a rising market. The reverse happens when "THEY" are bearish on the markets. This is a dynamic indicator that will change with time, and depending on conditions smart money can change their bias. If they do, then it will show up in the Razzmatazz. More about the Razzmatazz Indicators here.
Using Market Internals In Trading (July 23, 2020)
A Smarter Trading System (Feb 25, 2020)
How To Use & Trade With The Smart Money Indicator (Mar 19, 2019)
Princely's system has been rocking it. Takes all the emotion out of trading. Just follow the signals. No fuss. No muss. If you need excitement in your trading, just add leverage."Member "RickG"
I'd like to take a moment to give a big time shout out to the Smart Money Room and Mr. Princely Matthews. Since joining the Smart Money Room less than a month ago, in only three trades, I have made back almost 5% of my 18% loss from a counter trend index trade that began back in June of last year. I check the Smart Money Room before open .. check it again around lunch and then again before closing to find out where I need to be positioned overnight or weekend and I'm done for the day. It may not be for everyone but it hits the sweet spot for a purely novice trader like me because it's so easy a cave man can do it. There's a reason it's called the Smart Money Room.Member "Sloopy"
“I do my best trading and investing when someone else points me in the right direction. I have a full time job, 2 small kids and a busy life. I did a trial run on the Smart Money Room, joined and I now follow Princley on the buy/sell indicators -- he does the work for you. Literally --just follow his signals ---push the buy button and push the sell button, take your gains and use as you wish."Member "DaveJ"
Princely's signals paired with some mix between them have been stellar. We caught a big chunk of the last move up with a long and got out just in time on Friday. If you guys are not using this by itself or to cut bias on EW you are missing BIG TIME imo. Only thing you need to do is trust the signals....So a BIG shout to Princely, also, he is a REALLY great guy. If you have any doubts or want to work on something more specific within his system he will help you out, trust me, this is how we found the best way to use them.Member "H.E.Pennypacker"
What I love about EW is you know when things go wrong and you know when to get out of a position at minimal damage...it has helped so much in my RR work""Kenneth_Aydt" - Trading Room" - 2019-10-03
The relief of EWT philosophy on investing has been such a gift (besides being extremely profitable) that I have to say this is the most enjoyable service offered anywhere on the internet and probably the best investment I have ever made. Thanks Avi.""Talapus" - Trading Room" - 2020-01-27
My 401K money has been protected during this, and I'm making money in little chunks in my trading accounts. And that is all thanks to Avi, HD, Garrett, Zac, and so many great members here. Sincerely, my account and my family say a huge THANK YOU to you all.""Franchise"" - Trading Room 2020-03-16
After this week's action and watching how Avi & company nailed the piss out of so many moves, you can't argue with me anymore about the efficacy of EW. . . Just amazing to have a methodology that works so well PLUS the guidance from Avi.""Bcindc"" - Seeking Alpha 2020-03-09
I honestly don't know how anyone loses money on this site. You guys have the closest thing to a crystal ball I've ever seen.""joneil" - Trading Room" - 2020-09-23
I will say this about this site and the crew in general: It is one of the most cohesive, cooperative and harmonious "work" groups I have ever experienced. Everyone's dedication is exemplary, above and beyond the call of duty. The leadership is outstanding. All the trading and money making aside, it is a true pleasure to be here. I haven't even talked about the quality of the analysis. That, I think speaks for itself. OUTSTANDING!""Nanook" - Trading Room" - 2018-11-08
When it comes to navigating the markets, I feel like I was driving with a blindfold on before finding EWT.""bryanjf1" - Trading Room" - 2020-08-07
Avi, you are the best strategist that I follow and you have made more prescient calls than anyone on the street. I currently subscribe to your service and am very pleased. I have been a licensed financial advisor for over a decade and worked at a number of Fortune 500 companies in my career, including usbank, Morgan Stanley, Russell investment and now am a director and lincoln financial and i can tell you that none of the so called experts have virtually an ability to determine market direction. With you insight, i have made a killing and am basing my strategies around your advice. Keep up the good work and ignore the naysayers who are missing out on your sage advice!""Blue Chip Investing"" - Seeking Alpha 2020-04-12
Avi applies the most rigorous application of Elliott wave and Fibonacci analysis that I have seen. Add to that the invention of Fibonacci Pinball, a simple and elegant Fibonacci extension theory that I haven't seen anywhere else. It provides an almost eerie sense of direction once a second wave is identified.""ChillyD" - Trading Room" - 2020-06-30
Top ticks, bottom ticks. Not sure if EWT has enough power to move the market just yet or bigger money is following these world class analyst. Sure is a pleasure to be in company of such great analysts.""Goelz" - Trading Room" - 2020-06-17