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

Step 1: Open the Navigator Panel on Trading Platform Software

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

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

How Do I Add Stochastic Momentum Index Indicator on MT4? - How to Use Stochastic Momentum Index Indicator

How to Add Stochastic Momentum Index Indicator on MetaTrader 4 - 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 expand button marker (+) or double-click the 'indicators' menu, after this the button will appear as (-) and will now display a list as shown below - select the Stochastic Momentum Index chart indicator from this list of trading indicators so as to add the Stochastic Momentum Index indicator to the chart.

How to Add Stochastic Momentum Index Indicator on the Forex Chart

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

How to Add Custom Stochastic Momentum Index Indicator to MetaTrader 4

If the indicator you want to add is a custom indicator - for example if the Stochastic Momentum Index indicator you as a trader want to add is a custom indicator you will need to first add this custom Stochastic Momentum Index indicator on the MT4 platform & then compile custom Stochastic Momentum Index indicator so that the newly added Stochastic Momentum Index custom indicator pops up on the list of custom indicators on MT4 software.

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

About Stochastic Momentum Index Indicator Tutorial PDF

SMI Technical Analysis Signals

Developed by William Blau.

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

How Do I Add Stochastic Momentum Index Indicator in MT4 Charts?

Construction of Stochastic Momentum Index Indicator

This trading indicator is calculated by comparing the currency price relative to the average of an n number of price periods.

Then instead of drawing these values directly, smoothing using an Exponential MA is applied & then the values drawn to form the SMI.

When the closing price is greater than the average of the range, the SMI will move upwards.

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

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

Forex Analysis & How to Generate Signals

Buy & Sell Signals/ FX Crossover Signals

The SMI can be used to generate buy & sell trading signals using the method illustrated below, Buy when the SMI is moving upwards & sell when its heading downwards.

How to Add Stochastic Momentum Index Indicator in MT4 Charts

Buy and Sell Signals/ Forex Cross over Signals

Overbought/Oversold Level Forex Cross overs

Overbought levels above +40
Oversold levels below -40

Buy signal is generated when this oscillator falls below oversold level & then rises above this level & starts to move upwards.

Sell Signal is generated when this oscillator rises above overbought level and then falls below this level & starts to move downwards.

Divergence Forex Trading

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

How Do You Use Stochastic Momentum Index Indicator?

Bearish Trade Divergence Setup

Study More Lessons and Courses:

Trade Forex Trading