Stochastic Momentum Index Bitcoin Analysis & Stochastic Momentum Index Signals

Developed & Created by William Blau.

Stochastic Momentum Index, SMI is an adaptation of the classic Stochastic Oscillator which smoothens out the stochastics oscillations.

Stochastic Momentum Index Bitcoin Indicator - SMI BTCUSD Indicator

Construction of Stochastic Momentum Index Technical Indicator

This btcusd tool is figured out by seeing how the bitcoin value is when compared to the typical mean over a set amount of time.

Instead of showing these values directly, a smoothing method called Exponential Moving Average is used, and then the values are drawn to make the SMI.

when the final bitcoin price is greater than the average of the range, the SMI will circulate up.

When the closing bitcoin price is less than the average of the range, the SMI will move down.

This particular oscillator operates within a boundary ranging from +100 down to -100, and it generally exhibits less susceptibility to false signals ("whipsaws") when contrasted with the stochastic oscillator trading indicator.

Bitcoin Crypto Currency Analysis & Generating Signals

Buy and Sell Bitcoin Signals/ Crossover Signals

Use the Stochastic Momentum Index for crypto buy and sell cues. Buy as it rises. Sell when it drops.

Buy and Sell Bitcoin Signals Cross-over Signals - SMI Indicator

Buy and Sell Bitcoin Signals/ Crossover Signals

Overbought/Oversold Level Bitcoin Crossovers

Overbought levels above +40
Oversold levels below -40

A buy signal occurs when this oscillator drops below the oversold threshold and subsequently rises above that level, starting to move upward.

A sell bitcoin signal appears when the oscillator tops the overbought line, then drops below and heads down.

Divergence BTCUSD Trading

The example illustrated below indicates a bearish classic divergence between the bitcoin price & the SMI. When Stochastic Momentum Index showed this divergence the bitcoin price trend reversed and started to move in a downward direction.

Bearish Divergence Stochastic Momentum Index Crypto Indicator - SMI BTCUSD Indicator

Bearish Bitcoin Trade Divergence

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