Stochastic Momentum Index (SMI)

The Stochastic Momentum Index was introduced by William Blau in the January 1993 issue of "Technical Analysis of Stocks & Commodities Magazine".

SMI is similar to stochastics except that the close is calculated relative to the center of range instead of where price is relative to the range and runs from -100 to 100 instead of from 0 to 100.

It also traditionally has more moving averages applied before it is plotted with those moving averages being exponential instead of simple. It is traditionally considered overbought above +40 and oversold below -40.

Custom PCF Formula
Indicator 200 * XAVG(XAVG(Cz - (MAXHp.z + MINLp.z) / 2, a), b) / XAVG(XAVG(MAXHp.z - MINLp.z, a), b)
 p=Period, a=Smoothed, b=DoubleSmoothed, c=Signal, z=Offset
Trigger 200 * XAVG(XAVG(XAVG(Cz - (MAXHd.z + MINLd.z) / 2, a), b) / XAVG(XAVG(MAXHd.z - MINLd.z, a), b), c)

Where p is the period over which the range is calculated and must be an integer.

Where a, b, and c are all exponential moving average periods and must be integers.

Examples

A 40 period SMI with smoothing of 30 and double smoothing of 20 can be written as follows.

200 * XAVG(XAVG(C - (MAXH40 + MINL40) / 2, 30), 20) / XAVG(XAVG(MAXH40 - MINL40, 30), 20)

A signal line with a period of 10 applied to this SMI could be written as follows.

200 * XAVG(XAVG(XAVG(C - (MAXH40 + MINL40) / 2, 30), 20) / XAVG(XAVG(MAXH40 - MINL40, 30), 20), 10)

A Condition Formula for the SMI crossing up through its signal line could be written as follows.

XUP(200 * XAVG(XAVG(C - (MAXH40 + MINL40) / 2, 30), 20) / XAVG(XAVG(MAXH40 - MINL40, 30), 20) , 200 * XAVG(XAVG(XAVG(C - (MAXH40 + MINL40) / 2, 30), 20) / XAVG(XAVG(MAXH40 - MINL40, 30), 20), 10))