SMIReturn the value of the Stochastic Momentum Index Indicator for the selected price.
Syntax:
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SMI[N,SS,DS)(price) |
This indicator represents the position of the close relative to the median point whereas the traditionnal stochastic represents the position of the close relative to the highest and lowest points. We use a double smoothing with an exponential moving average so that the signals are more consistent.
The SMI also gives good divergence signals.
Example:
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mySMI = SMI[14,3,5](close) if(mySMI>40) THEN overbought = 1 oversold = 0 ELSIF mySMI<-40 THEN overbought = 0 oversold = -1 ELSE overbought = 0 oversold = 0 ENDIF RETURN overbought, oversold |
