Simplified and profitable trading strategy.
The Stochastic Momentum Index offers a
simplified approach to trading, especially with Renko bars.
This indicator is easily located with a
search on the internet as it is not included in all charting
packages, if not found it can easily be coded to suit whichever
platform requires it.
I am attaching three charts from today
and you will see that it shows a pending change in direction as it
approaches and passes the 40 level.
Personally, I use a moving average as
shown on the charts as a confirmation.
On each of the charts above, you will
easily see how the trend change was depicted, making this indicator a
simple way to measure as to when entries and exits can be made.
Each trader will have to adjust the
indicator settings to get the chart to talk to him/her vividly, other
than that the indicator does not need much else in the way of
support.
Study these charts for a few minutes
and then have a glance at the articles I have attached to clarify the
various applications of the indicator.
Once you have studied the articles and
the charts you will be able to easily adapt the Stochastic Momentum
Index to your trading system.
I have added an excellent video at the bottom of the page, the author explains in detail as to how she uses this tool.
I have added an excellent video at the bottom of the page, the author explains in detail as to how she uses this tool.
Technical analysis: key levels for FTSE, DAX and Dow - IG
Tue, 26 Aug 2014 10:04:15 GMT
Technical analysis: key levels for FTSE, DAX and DowIGHowever, with the stochastic momentum index also sitting at extreme levels traders should be careful before going all in. A look at the intraday chart shows that 6820 is holding back upward moves ...
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Here are some tips as to the use of the indicator
http://www.informedtrades.com/ Wed, 11 Dec 2013 16:16:59 -0800
Trade the Stochastic Momentum Index Indicator on the Forex.com Platform KEY POINTS REGARDING THE STOCHASTIC MOMENTUM INDEX Introduced by William Blau.
FREE TIME USER: Stochastic Momentum Index (SMI)
http://freetimeuser.blogspot.com/ Mon, 13 Feb 2012 01:11:15 -0800
Stochastic Momentum Index (SMI). Developed by William Blau in 1993, it is an extension of the Stochastic Oscillator indicator, only calculated slightly different (it regards the mid range instead of the true range of the price per period).
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The following article emphasizes the simplicity available from this strategy.
Stochastic Momentum Index Strategy Review | Forex ...
http://forex-trading-blog.com/ Tue, 14 Jan 2014 06:06:40 -0800
Stochastic Momentum Index Strategy Review. It is Easy to learn Forex strategy that takes only a few minutes a day to find and manage trades. It uses readily available charting tools and visually oriented method for rapid and systematic ...
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The author of this video goes into detail as to how she applies the indicator to her charts and how she interprets it. This is well worth watching.
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