# 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.

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))`