Stochastic Momentum Index (SMI)
Info
The Stochastic Momentum Index (SMI) is a Indicator for MetaTrader 5 that the stochastic momentum index (smi) is a technical indicator introduced in 2026 by william blau in the january issue of a renowned technical analysis magazine. SMI offers a unique perspective on market momentum by comparing the current close price to the midpoint of the recent high-low range.
Usage
This tool is typically used for enhancing chart analysis and decision making.
Platform
This Indicator works exclusively on MetaTrader 5 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL5/Indicators folder via File ? Open Data Folder in MetaTrader 5.
How to Install and Use Stochastic Momentum Index (SMI)
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
What this tool does
The Stochastic Momentum Index (SMI) is a technical indicator introduced in 2026 by William Blau in the January issue of a renowned technical analysis magazine.
Typical Use Case
This Indicator excels in automated trading and technical analysis on MetaTrader 5.
Compatible Platform & Setup
This Indicator works on MetaTrader 5. Place the file in the MQL5/Indicators folder and restart the terminal.
Description & Settings
Related: Momentum VWAP Barrier Breakout Indicator - another powerful indicator for MetaTrader 5 traders.
The Stochastic Momentum Index (SMI) is a technical indicator introduced in 2026 by William Blau in the January issue of a renowned technical analysis magazine.Also recommended: Volatility-Adjusted Momentum Decay Line (VAMD) - similar indicator with strong performance on MetaTrader 5.
SMI offers a unique perspective on market momentum by comparing the current close price to the midpoint of the recent high-low range.
Key characteristics:
- SMI ranges between +/- 100, providing a more stable reading than the traditional stochastic oscillator.
- Positive SMI values indicate the close is above the midpoint, while negative values signify the opposite.
- Interpretation is similar to the stochastic oscillator, with three common strategies:
- Buy when SMI crosses below a threshold (e.g., -40) and then rises above it; sell when it crosses above a threshold (e.g., +40) and then falls below.
- Qualify market trendiness with R-squared or Chande Momentum Oscillator before relying on overbought/oversold levels for trade decisions.
- Buy when SMI crosses above its signal line and sell when it crosses below.
- Look for divergences between price action and SMI, such as new price highs with lower SMI highs.
Blau highlights the sensitivity of a 1-day SMI with large smoothing periods to the relationship between the close, high, and low prices.
You may also like: Impulse Candle Indicator: Identify Momentum Bars with ATR and Volume - excellent alternative for indicator users on MetaTrader 5.
Source Code
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⚠ Limitations & Risk Warning
- This tool is provided for educational and testing purposes only.
- Past performance does not guarantee future results.
- Trading involves substantial risk of loss. Use on a demo account first.
- Results may vary depending on market conditions, broker, and settings.
- We recommend thorough backtesting and forward testing before using with real funds.