Smart Volume Imbalance (SVI) — Lower Panel (MNQ tuned)

How to use & interpret (quick guide — tuned for MNQ)

What SVI shows

SVI > 0 — price move is directionally efficient with supportive volume (bullish smart flow).

SVI < 0 — price move is directionally efficient with selling pressure (bearish smart flow).

Large |SVI| (default threshold ±1.5) indicates institutional-strength moves worth respecting.

Absorption (orange/yellow marker): high volume but small candle body → potential smart accumulation/distribution (often precedes directional moves).

Primary signals

Entry (momentum): SVI crosses above +svThresh on pullbacks aligned with trend (use price structure to confirm).

Fade / Short: SVI falls below -svThresh at or near resistance, especially with bearish divergence.

Divergence: Price makes higher high but SVI makes lower high → likely smart-money sell; be cautious.

Default parameter reasoning for MNQ

volLen = 20, spreadLen = 20 — balances responsiveness and noise for a fast future.

normLen = 50, smoothLen = 8 — reduces tick noise but still responsive to MNQ spikes.

absorbVolMul = 1.8 — flags volume ~80% above average as significant; tweak if your data source reports higher/lower baseline.

Tuning tips

If you see too many false signals, increase normLen or smoothLen (more smoothing).

If you want earlier signals (more noise), lower smoothLen and normLen.

For lower-timeframes (1s/1m) you may need shorter SMAs; for higher-timeframes (5m+) defaults often work well.

Practical workflow

Use SVI in a separate lower panel while trading MNQ on your preferred timeframe (1m–5m are common).

Combine SVI with structure: only take bullish SVI signals above a prior structure support / after CHoCH, etc.

Watch absorption zones near highs/lows — they often signal where smart money is stepping in/out.