Another gold standard for traders:
The Stochastic Momentum Index (SMI) is a modified version of Blau’s Double Smooth and compares the median of the high- and low values to the current close price and is used to indicate overbought or oversold conditions in a market.
Because it is improving stochastic readings by eliminating false swings, the Stochastic Momentum Index indicator is viewed as an improved version of the stochastic oscillator by traders of all levels.
Therefore, it is a first choice indicator for many traders to spot the ideal sell/buy opportunities on NinjaTrader 8.
✅ Indicates momentum
✅ Support & resistance levels
✅ Better stochastic reading
✅ Sell/buy signal lines
✅ Fitting experienced & new traders
✅ Fully compatible with NinjaTrader 8
How to read?
Due to its plot ranging from -100 to +100, it is a good indicator of divergence. Reading it is quite easy:
If the plot moves below a level of, for example, -50 and past the signal line, buying is indicated.
But, if it moves past, for example, +50 and is below the signal line, selling is indicated.
The signal lines can be set according to preference.