ThinkScripter » Stochastic Momentum

Multiple Timeframe SMI

ThinkScripter — Tue, 23 Mar 2010 01:09:35 +0000

One of the most basic tenants of trading is the use of multiple timeframes. The highest probability signals occur when indicators align across multiple different time period charts. The Multiple Timeframe Stochastic Momentum Index (SMI) monitors multiple timeframes simultaneously and indicates when an overbought or oversold alignment exists with either a red or green vertical band. ****Note: You must not have the TOS style setting “Fit studies to screen” checked for the indicator to work properly.**** Also pictured are Sine Wave Cycles and a custom thresholded version of the Fisher Transform Signals. The paintbar coloring is courtesy of a forthcoming trend indicator I am developing. (Note: The Multiple Timeframe SMI will be sent out during this weekend’s Pro Subscriber update.)

Multiple Timeframe SMI

Stochastic Momentum Index with Divergence Signals

ThinkScripter — Tue, 02 Feb 2010 01:32:49 +0000

I’ve taken the TOS Stochastic Momentum Index, a fast oscillator adept at showing divergences, and added a little twist. Each time the indicator makes a top or bottom and a regular divergence (trend reversal) is detected, an arrow is added indicating the direction of the divergence. The red arrows indicate negative divergence and green positive. Hidden divergences (continuation signals) are plotted in white. Also pictured is a custom variation of the Volume Profile allowing expanded fidelity by stacking numerous copies of the indicator. A keen eye will also reveal my incarnation of a support and resistance indicator based on sine wave cycles which is under development. Both studies will be included in next weekend’s Pro Subscriber update.

SMI with Divergence