MP SMI Indicator

MP SMI Indicator

MP SMI Indicator for MT5 is an advanced version of Stochastic Oscillator with the best BUY and SELL signals for Forex trading.

The MP SMI Indicator for MT5 is an improved version of the classic stochastic oscillator. SMI refers to the Stochastic Momentum indicator and calculates the underlying price momentum. There is a big difference between the classic Stochastic oscillator and the calculation of the MP SMI Indicator.

SMI uses average prices between the high and low, while the stochastic oscillator uses closing prices, making SMI trading signals more responsive. As a result, forex traders can identify bullish and bearish turning points and BUY and SELL accordingly.

The indicator works well on all intraday price charts, as well as daily, weekly and monthly price charts and is well suited for top-down technical analysis. The indicator is useful for both beginners and experienced Forex traders.

New forex traders may find SMI trading signals smoother and lower frequency than the classic stochastic oscillator. On the other hand, experienced Forex traders can use the indicator to apply advanced Forex trading strategies.

MP SMI Indicator For MT5 Trading Signals

The EURUSD Daily price chart above shows the MP SMI Indicator for MT5 in action. The indicator is an oscillator and is displayed in a separate indicator window. The oscillator shows GREEN and RED lines in the indicator window.

Technical Forex traders can use the indicator in the following two ways:

Intersection of SMI oscillator lines.
Divergence trading strategy.
If the GREEN oscillator line crosses the rising RED line, it indicates the beginning of a BULLSH price trend. This crossover represents a trend reversal. Thus, forex traders can enter the market with a BUY trade with a stop loss below the previous swing low. The best take profit point is the opposite crossover signal or a good risk/reward ratio.

Likewise, a downward cross of the GREEN oscillator line below the RED line indicates a reversal point for a BEAR market. Therefore, forex traders should place a SELL position with a stop loss above the previous swing high. It is best to exit a position when the oscillator crosses in the opposite direction or when there is a good risk/reward ratio. Forex traders can use this indicator for top-down technical analysis as well as automated trading strategies.

Divergence trading using the classic stochastic oscillator is a popular trading strategy. Likewise, trading divergences using the MP SMI Indicator or the Stochastic Momentum indicator is also profitable. Forex traders can apply classic divergence trading rules to the MP SMI Indicator to determine the best reversal points. However, the MP SMI Indicator is more responsive than the classic stochastic oscillator. Because SMI uses the average price range to calculate oscillator values rather than closing prices.

Conclusion
The MP SMI Indicator for MT5 can be used to trade multiple trading methods and is as profitable as the classic Stochastic indicator. Forex traders can download the indicator for free and install it easily.