How to Set Stochastic Momentum Index on MetaTrader 4 Charts - Adding MT4 SMI Indicator

Step 1: Open Navigator Panel on Trading Software Platform

Open the Navigator window as shown and illustrated below: Go to the 'View' menu (press on it), then select 'Navigator' window (press), or From Standard ToolBar click the 'Navigator' button or press key board short-cut keys 'Ctrl+N'

On Navigator panel, choose 'Indicators', (DoublePress)

How Do I Add Stochastic Momentum Index in MT4 Platform Software? - How to Use Stochastic Momentum Index Indicator

How to Set Stochastic Momentum Index on the MT4 Software - MT4 Stochastic Momentum Index Indicator

Step 2: Expand the Indicators Menu on the Navigator - Adding Stochastic Momentum Index MT4 Indicator

Expand the menu by clicking the unfold tool button impress mark ' + ' or double-click the 'indicators' menu, after that this button will appear and be shown as (-) & will now display a list just as shown below - choose the Stochastic Momentum Index chart indicator from this list of indicators so as to add the Stochastic Momentum Index to the chart.

How to Set Stochastic Momentum Index on the FX Chart

How to Set Stochastic Momentum Index - From the Above window you as a trader can then place Stochastic Momentum Index that you want on the Forex chart

How to Set Custom Stochastic Momentum Index to MT4

If the indicator you want to add is a custom indicator - for example if the Stochastic Momentum Index you as a trader want to add is a custom indicator you'll need to first add this custom Stochastic Momentum Index on the MetaTrader 4 software and then compile the custom Stochastic Momentum Index so that as the newly added Stochastic Momentum Index custom indicator pops up on the list of custom technical indicators on MetaTrader 4 software.

To learn how to install Stochastic Momentum Index indicators on MT4 Platform, how to add Stochastic Momentum Index window to MT4 and how to add Stochastic Momentum Index custom indicator on the MT4 Software - How to add a custom Stochastic Momentum Index in MT4 Platform.

About Stochastic Momentum Index Tutorial Course PDF

SMI Technical Analysis Signals

Developed by William Blau.

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

How Do I Add Stochastic Momentum Index in MT4 Charts?

Construction of Stochastic Momentum Index Indicator

This trading indicator is calculated by comparing the price compared to the average/mean of an n number of price periods.

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

When the closing price is higher than the average/mean of the range, the SMI will move upwards.

When the closing price is less than the average/mean of the range, the SMI will move downwards.

This oscillator ranges between the values of +100 and -100, this technical indicator is also less prone to fake outs compared & analyzed to the stochastic oscillator indicator.

FX Analysis and How to Generate Trading Signals

Buy and Sell Signals/ FX Crossover Signals

The SMI can be used to generate buy and sell signals using the method shown below, Buy when the SMI is going upwards and sell when its moving downward.

How to Set Stochastic Momentum Index in MetaTrader 4 Charts

Buy and Sell Signals/ FX Crossover Signals

Overbought/Oversold Level Forex Cross overs

Overbought levels above +40
Oversold levels below -40

Buy signal is generated/derived when this oscillator falls below over-sold level & then rises above this technical level & begins to move upwards.

Sell Signal is generated/derived when this oscillator rises above overbought level and then falls below this technical level & begins to move downward.

Divergence Forex Trading

The exemplification laid-out below indicates a bearish classic divergence between the price & the SMI. When the Stochastic Momentum Index showed this divergence the trend reversed & started to move in a downward direction.

How Do You Use Stochastic Momentum Index Indicator?

Bearish Trade Divergence Setup

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