Momentum

Stochastic Momentum Index

SMI

Measures the distance of the close from the midpoint of the N-period high-low range, then double-smooths both the numerator and denominator with EMAs. The result is less prone to whipsaw than the standard Stochastic and ranges roughly −100 to +100.

Tips

SMI above +40 is considered overbought; below −40 is oversold—but in strong trends the indicator can remain extreme for extended periods

SMI signal-line crossovers inside the overbought/oversold zones are higher-probability reversal signals than crossovers in the neutral zone

Parameters

K Period

2 - 50

D Period

2 - 50

Signal

2 - 30