The Stochastic Momentum Index (SMI) indicator for cTrader is a refined momentum oscillator that applies double EMA smoothing to both the relative range and high–low range, producing a smooth and stable momentum curve. It measures the position of the close price relative to the midpoint of the recent high–low range, with values oscillating between -100 and +100. Default overbought and oversold levels are set at +40 and -40, respectively, to highlight momentum extremes.

The indicator plots three key elements: the main SMI momentum line, an EMA-based signal line for crossovers and confirmation, and reference levels for overbought, oversold, and the zero midpoint. Traders use the zero line as a directional filter to identify bullish or bearish pressure and trade pullbacks via SMI and signal line crossovers. It also supports mean-reversion strategies by signaling fades from overbought/oversold conditions and can highlight momentum divergences.

A multi-timeframe option allows calculation of the SMI from a higher timeframe while displaying it on the current chart, helping to filter noise and improve signal quality. User inputs include lookback lengths for %K and %D, signal line EMA length, overbought/oversold levels, and timeframe selection. The indicator is designed for use across various markets including Forex, stocks, commodities, indices, and cryptocurrencies.