Red Shade in the Top indicates that the stock is oversold and the Green shade in the bottom indicates overbought. Strategy: Enter Long once the Overbought Zone ended and there's a crossover below -35.

* Note: the example images are from my other indicator named "DMI Stochastic Momentum Index" as the parameters are similar. ... Release NotesAdded a new parameter to choose a different timeframe. Useful for combined analysis of multiple timeframes, as suggested by trader Robert Miner in his book "High Probability Trading Strategies".

The Stochastic Momentum Index (SMI) ... a more reliable indicator that minimizes false swings by measuring the distance between the current closing price and the median of the high/low price range....

September 10, 2024 - Red Shade in the Top indicates that the stock is oversold and the Green shade in the bottom indicates overbought. Strategy: Enter Long once the Overbought Zone ended and there's a crossover below -35.

2 weeks ago - EXHAUSTION EXIT Positions close when RSI reaches the opposite extreme AND begins reversing. The strategy waits for confirmed momentum exhaustion rather than exiting on the first touch of a level.

February 20, 2026 - Adaptive Stochastic+ solves this by running two parallel optimization processes: K Period Selection → Tests multiple %K lengths to determine the most responsive momentum structure Smoothing Selection → Evaluates different smoothing levels to balance noise and stability Each configuration is scored using an exponential performance model that tracks whether momentum is consistently aligning with price movement.

Instead of applying RSI directly to raw price, the indicator first passes price data through a Discrete Fourier Transform (DFT) to extract dominant frequency components, then applies RSI-weighted filtering to produce a cleaner, less noisy momentum signal. This filtered signal is then blended with the Stochastic Momentum Index to create a composite that captures both trend momentum and mean-reversion potential.

For those looking for help understanding this - wiki.timetotrade.eu/Stochastic_Momentum_Index tradingstrategyideas.com/entries/stochastic-momentum-index/ tlc.thinkorswim.com/center/charting/studies/studies-library/R-S/StochasticMomentumIndex.html sierrachart.com/supportboard/attachment.php?attachmentid=4714&d=1277899234

▮Introduction Stochastic Momentum Index (SMI) Indicator is a technical indicator used in technical analysis of stocks and other financial instruments. It was developed by William Blau in 1993 and is considered to be a momentum indicator that ...

September 23, 2022 - Stochastic Momentum Index (SMI) The SMI is considered a refinement of the stochastic oscillator. It calculates the distance of the current closing price as it relates to the median of the high/low range of price.

February 19, 2025 - The standard settings for the Stochastic Momentum Index will depend on the trading platform, as different platforms may have different default settings. But generally, the default settings are 10, 3, 3 —that is, a K-period of 10, a D-period of 3, and 3 period for the signal line EMA. On the TradingView, for example, the settings are 10, 3, 3, as you can see in the image below: However, you can change the settings to whatever works best for your trading strategy...

October 14, 2023 - To set up the SMI indicator in TradingView, go to the “Indicators” tab, and search for stochastic momentum index.

By adjusting the timeframes and paying attention to divergences and signal line crossovers, traders can use it as part of a broader trading strategy. However, remember that no indicator is a magic bullet and should always be used in conjunction with other analytics and indicators to make informed trading decisions. ... Reverse Stochastic Momentum Index On ChartIntroducing the Reverse Stochastic Momentum Index "On Chart" version According to Investopedia : “The Stochastic Momentum Index (SMI) is a more refined version of the stochastic oscillator, employing a wider range of values and having a higher sensitivity to closing prices...

SMI Crossover Strategy This strategy relies on the crossover between the %K and %D lines to generate buy and sell signals. Buy Signal: When the %K line crosses above the %D line, it indicates bullish momentum.

November 27, 2023 - Quick search yields nothing with the Authors name in the forum, so doesn't appear to have been converted yet. https://www.tradingview.com/script/HLbqdCku-Stochastic-Momentum-Index-SMI/ //@version=2 //Stochastic Momentum Index // Author: Surjith S M (India) // Copyright: CC 3.0 //Thanks UCSgears, lonestar108 study("Stochastics Momentum Index", shorttitle = "Stoch_MTM") a = input(10, "Percent K Length") b = input(3, "Percent D Length") ob = input(40, "Overbought") os = input(-40, "Oversold") // Range Calculation ll = lowest (low, a) hh = highest (high, a) diff = hh - ll rdiff = close - (hh+ll)/2 avgrel = ema(ema(rdiff,b),b) avgdiff = ema(ema(diff,b),b) // SMI calculations SMI = avgdiff != 0 ?

May 9, 2018 - Stochastic Momentum Index indicator script. This indicator was originally developed by William Blau (Stocks & Commodities V. 11:1 (11-18)).

December 26, 2023 - The strategy tests buying and selling rules built around this indicator. ... The Stochastic Momentum Index (SMI) is a refinement of the stochastic oscillator that can provide traders with valuable information about an asset’s price momentum.

April 1, 2024 - If this was your style of trading, you’d take special note when the stochastic momentum index is around these zones. When the current closing price plot is higher than the average of the high/low, we see a positive return on the SMI · If the current closing plot is lower than the average of the high/low, we will see a negative return plotted. There are 3 main trading strategies when using the SMI:

October 21, 2016 - This is an implementation of the Stochastic Momentum Index from William Blau's his article in Stocks & Commodities. This also allows the use of various different kinds of moving averages for the signal line.