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:
- Time Periods: X
- Smoothing Periods: X
- Double Smooth Periods: X
- 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.
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.