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In forex trading ,
the SMI will be negative if the close is less than the middle point of the range. The SMI will be positive if the close is greater than the middle point of the range. |
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| The SMI interpretation
in forex trading is in fact the same as that of the Stochastic Oscillator. The most ordinary way of using it is to trade from is to sell when the SMI rises above +40 and then returns to the point under that level and to purchase at the moment when the SMI decreases under -40 and then shifts back above it. |
Another trading sign
in forex trading is to purchase when the SMI shifts above the moving average, and sell when the SMI decreases below the moving average.
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Usually in forex
trading before basing any trades on strict oversold or overbought levels it is better to qualify the trendiness of the market using an indicator, for example, R-Squared.
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Levels should provide
the most effective results if indicators provide a non-trending market trades based on strict oversold or overbought. In forex trading,we advise you to test this indicator in demo account trading before using it in real account.
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