StochasticMomentumIndex

Description

The Stochastic Momentum Index (SMI) is similar to Stochastic Oscillator with the difference that it finds position of the Close price relative to the High-Low range's midpoint, not the range itself. This difference results in the oscillator being plotted on the -100 to +100 scale.

It is considered a Buy signal when the SMI crosses above the oversold (-40) level; Sell signal, when it crosses below the overbought (+40) level. The primary plot is accompanied with its Exponential Moving Average so that additional signals are produced. Crossing above the EMA suggests the Buy signal; crossing below, Sell signal.

Input Parameters

Parameter Description
over bought The overbought level.
over sold The oversold level.
percent d length The number of bars used to smooth the SMI.
percent k length The number of bars used to calculate the SMI.

Plots

Plot Description
SMI The Stochastic Momentum Index plot.
AvgSMI The EMA of the Stochastic Momentum Index plot.
overbought The overbought level.
oversold The oversold level.

Example*

*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.

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