How to Add MT5 Stochastic Momentum Index Indicator in MetaTrader 5 Charts

Step 1: Open MetaTrader 5 Platform Navigator Panel

Open MetaTrader 5 Navigator window as explained on the MT5 example below: Go to "View" menu (click), then choose the "Navigator" window (click), or From Standard Tool Bar click the "Navigator" button or press keyboard MT5 shortcut keys "Ctrl+N"

On MT5 Navigator window, select "Indicators", by Double Clicking

How Do You Use MT5 Stochastic Momentum Index Technical Indicator in MT5?

How to Add Stochastic Momentum Index MT5 Indicator

Expand the menu by clicking the expand button (+) or double click the "indicators" menu, after this the button will be displayed as (-) and will now display MT5 indicators list as explained on the MT5 example below - select the Stochastic Momentum Index technical indicator from this list of MT5 indicators so that you can add the Stochastic Momentum Index MT5 technical indicator on the MT5 forex chart.

How Do You Use MT5 Stochastic Momentum Index Technical Indicator in MT5?

How to Place Forex Custom Stochastic Momentum Index Indicator on MT5

If the MT5 indicator that you want to add on the MT5 charts is a custom MT5 technical indicator - for example if the Stochastic Momentum Index technical indicator that you want to add is a custom MT5 technical indicator you will need to first add this custom Stochastic Momentum Index MT5 technical indicator on the MT5 platform & then compile custom Stochastic Momentum Index technical indicator so that the newly added Stochastic Momentum Index MT5 custom indicator pops up on the list of custom technical indicators on the MT5 platform.

To learn how to add Stochastic Momentum Index indicators on MT5 platform - how do you add Stochastic Momentum Index indicator window to MT5 platform? - how do you add Stochastic Momentum Index forex custom indicator on MT5 platform? - How to add custom Stochastic Momentum Index custom forex indicator on MT5.

How Do You Use Stochastic Momentum Index MT5 Indicator?

Stochastic Momentum Index Indicator Technical Analysis & SMI Buy & Sell Signals

Developed by William Blau.

The Stochastic Momentum Index, SMI indicator is an adaptation of the classic Stochastic Oscillator technical indicator that smoothes out the stochastic indicator oscillations.

How to Add MetaTrader 5 Stochastic Momentum Index Indicator in MetaTrader 5 Charts

Construction of Stochastic Momentum Index Indicator

SMI indicator is calculated by comparing the forex price relative to the average of an n number of forex price periods.

Then instead of drawing these values directly, a smoothing using an Exponential Moving Average is then applied to the values and the values are then drawn to form the SMI indicator.

When the closing forex price is greater than the average of the forex price range, the SMI indicator will move up.

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

SMI indicator oscillator ranges between values of +100 and -100, this SMI indicator is also less prone to forex whipsaws compared to the stochastic oscillator forex indicator.

How to Generate Buy and Sell Signals

Buy and Sell Signals

The Stochastic Momentum Index indicator can be used to generate buy and sell trading forex signals using the forex technical analysis method shown below - Buy trading forex signal is when the SMI indicator is heading upwards - Sell trading forex signal is when the SMI indicator is heading downwards.

Overbought and Oversold Levels FX Trading Crossovers

• Overbought levels is SMI indicator values above +40
• Oversold levels is SMI indicator values below -40

Buy trading forex signal is generated when SMI indicator oscillator falls below the oversold levels and then rises above these oversold levels and starts moving upwards.

Sell trading forex signal is generated when SMI indicator oscillator rises above the overbought levels and then falls below these overbought levels and starts moving downwards.

Divergence Trading Forex

The SMI indicator example below shows a bearish classic divergence trading setup between the forex price & the SMI indicator. When the Stochastic Momentum Index indicator showed this divergence trading forex signal the forex price trend reversed and started moving in a downwards direction.

Bearish Divergence Stochastic Momentum Index Technical Indicator

How Do You Use MT5 Stochastic Momentum Index Technical Indicator in MT5?