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Lately I have been incorporating the Stochastic Momentum Index (SMI) into my trading. However something is confusing me about the indicator.
In short, I have been reading a lot of articles on the web about the SMI that refer to the parameters of the indicator in a much different way to how the SMI parameters seem to be laid out in Metastock (my main platform). I find it is almost as if people are talking about a different indicator to what I am seeing.
For example, I recently came across an article by a trader named Julie Wade regarding the Stochastic Momentum Index. The article draws on the ideas of Anne Marie Baiynd. In her article, Ms Wade mentions using a combination of "4-10 fast SMI overlaid on top of a slower 10-40 SMI".
Sounds easy enough, however, within Metastock (and a few other platforms I have looked at), the SMI parameters are generally set out as follows:
%K Parameters
- Time Periods: X
- Smoothing Periods: X
- Double Smooth Periods: X
%D Parameters
- Time Periods: X
- Method: (i.e. simple, exponential etc)
As such, how would I go about creating '4-10' and/or '10-40' SMI. I am not sure what they even mean.
I was hoping someone might be able to shed some light on how to set up both a "4-10 fast SMI" and a "10-40 slow SMI". Could Ms Wade be talking about a slightly different indicator?
So far I have been unable to contact Ms Wade, so I thought this great forum might be able to help. I apologize if this is an incredibly obvious question.
A big thank you in advance.
EdenR
Can you help answer these questions from other members on NexusFi?
Did you ever get a response to your question? I also am interested in the SMI, I am using thinkorswim and it only has a simpler version of the SMI without as many parameters available to change compared to MetaStock. This was referenced by Anne Marie Baiynd on a YouTube video.
I appreciate any information you may have discovered.
I have been using SMI for some time on the TOS platform and took some notes from Steve Miller on TastyTrade. He suggested setting the overbought at 40 and the oversold at -40.
Percent d length is set to 3
Percent k length is set to 5
AREK, you asked if the SMI Indicator could be scanned.
Here is a the link for a shared SMI with chart alerts. --- Sorry not cleared for posting links.
It can be used on any time frame
A scan can be built by going to the "SCAN" tab and "Add study filter"
Set the BearP or BullP to true within 1 or more bars
The Chart Alerts are commented out at the bottom of the Script.
Take the # off each line and the alerts will work
Change the OBOT / OSLD to change the threshold for the signal
Have fun---
If you want to do a copy / paste to load the script ....
#Plot Zero = 0;
#Zero.setDefaultColor(getcolor(1));
def Bear = SMI[1] >= OBOT and SMI[1] == Highest(SMI[1] , 10) and SMI < SMI[1] ;
def Bull = SMI[1] <+ OSLD and SMI[1] == Lowest(SMI[1] , 10) and SMI > SMI[1] ;
plot BearP = if Bear then smi else if Bear then smi else Double.NaN;
BearP.AssignValueColor(if Bear then Color.Red else Color.CURRENT);
BearP.SetLineWeight(5);
BearP.SetStyle(Curve.POINTS);
plot BullP = if Bull then SMI else Double.NaN;
BullP.AssignValueColor(if Bull then Color.Green else Color.CURRENT);
BullP.SetLineWeight(5);
BullP.SetStyle(Curve.POINTS);
hi my friends, I am sorry,
I'm sorry but I don't understand how to create the script to use in the TOS Scan tool, could you please indicate here a new script only with the lines to search for the option "BullP".
Thank you very much for your patience with those of us who do not know how to create scripts