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Momemtum

SMI vs. Stochastic: Which One Gives You the Edge?Momentum indicators are essential tools in every trader’s arsenal—but not all are created equal. While the Stochastic Oscillator has been a go-to for decades, the Stochastic Momentum Index (SMI) offers a more refined and reliable way to read market momentum. In this post, we’ll break down the key differences between these two indicators, how we use them at Xuantify , and why the SMI might just give you the edge you’ve been looking for. 🧠 How We Use It at Xuantify We’re always looking for tools that offer greater precision and less noise . While the Stochastic Oscillator is one of the most commonly used tools for spotting overbought and oversold conditions, the Stochastic Momentum Index (SMI) gives us a clearer, smoother view of momentum —especially in volatile or choppy markets. We use the SMI to refine our entries and exits , particularly when trading breakouts or reversals. MEXC:ETHUSDT.P ⭐ Key Features Stochastic Oscillator : Measures the closing price relative to the high-low range. Simple and responsive. Great for spotting short-term reversals. Stochastic Momentum Index (SMI) : Measures the distance of the current close from the midpoint of the high-low range. Smoother and more centered around zero. Better at filtering out false signals. 💡 Benefits Compared to Other Indicators Stochastic Oscillator vs. SMI: Signal Smoothness: Moderate vs. High Noise Filtering: Low vs. Excellent Centered Oscillation: No vs. Yes (around 0) Best Use Case: Range-bound markets vs. Trend shifts & momentum confirmation False Signal Risk: Higher vs. Lower The SMI is especially useful when you want to avoid whipsaws and get a more reliable read on momentum . ⚙️ Settings That Matter Stochastic Oscillator : %K = 14, %D = 3 SMI : Length = 14, Signal Smoothing = 3, Double Smoothing = 3 You can adjust the SMI smoothing values to match the volatility of the asset— lower smoothing for fast markets , higher for slower ones. 📊 Enhancing Signal Accuracy Enhance SMI signals by combining them with: Trend filters like EMAs or Supertrend Volume confirmation Support/resistance zones Divergence spotting for early trend reversals This layered approach helps us avoid false positives and stay aligned with the broader trend . 🧩 Best Combinations with This Indicator SMI + EMA Crossovers: Confirm momentum with trend direction SMI + RSI Divergence: Spot early reversals with confluence SMI + Volume Profile: Validate momentum near key price levels ⚠️ What to Watch Out For Lag in fast markets: SMI’s smoothing can delay signals slightly Over-optimization: Avoid excessive tweaking of parameters Not ideal alone: Best used with confluence tools for confirmation 🚀 Final Thoughts The Stochastic Oscillator is a classic for a reason—but the Stochastic Momentum Index is a refined evolution . We’ve found that SMI gives us cleaner signals , better momentum clarity , and fewer false alarms —especially when paired with smart filters. If you're looking to upgrade your momentum toolkit , the SMI might just be your edge. 🔔 Follow us for more educational insights and strategy breakdowns! We break down indicators, strategies, and market psychology to help you trade smarter—not harder.
Education
by Xuantify
COTI - Trend-Following Buy Setup!Hello everyone, if you like the idea, do not forget to support with a like and follow. COTI is overall bullish and now approaching the lower blue trendline so we will be looking for buy setups on lower timeframes. on DAILY: COTI is forming a channel in red but the upper trendline is not valid yet, so we are waiting for a new swing high to form around it to consider it our trigger swing. Trigger => Waiting for that swing to form and then buy after a momentum candle close above it (gray zone) Meanwhile, until the buy is activated, COTI would be overall bearish can still trade lower inside the green support. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
Long
by TheSignalyst
7
Uuii UbisoftBuying points: -trend line from July,15 -strong support at 51.14€ -MACD: MA lines extremely under average -RSI: oversold Selling points: -all SMAs above the price -MACD shows negative momentum Fundamentals -selling pressure bc of bad earnings of the gaming industry (take-two) -seasonal summer impact -> people are more outside, fewer sales -guidance of next earnings: meh Conclusion Technically the stock has a great potential to bounce back to a certain level which I think is 59-60€. So, with a tight stop loss, we are looking for a 17% return. My strategy, in this case, is to sell the stock when it hits SMAs like 50 or 100 (main goal 100). You could argue that the share has the chance to get to the upper downtrend line but the fundamentals do not support this theory, not in the short-mid term. Short opportunities could arrive after we go under the trend and support line (full daily closed candle). This would become approximately 20% down to the next support line of 40€. As all ways, I try my best to calculate the best risk/reward ratio. If you like my analysis you can follow for more quality content.
EURONEXT:UBILong
by Chrlstlan
Possible IBG Long Position!!ASX:IBG SELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY SMP Strategy Market Direction: Long Position Chart time frame - Daily Timeframe - 30 days A – Activating Event Market will meet support in zone @ current levels - ... . In order to enter into this trade, the pair MUST be in line with my Entry Procedure.... B – Beliefs Market will move towards the first Target 1 level @ 0.045 C - Fundamentals that may affect the pair N/A D - Trade Management Entered @ ..... Stop Loss @ ..... Trailing Stop Loss@..... Target 1 @ 0.045 Target 2 @ .... Risk/Reward @ 1.3.5 Happy trading :) Follow your Trading plan, Remain disciplined and Keep learning !! Please Follow, Like,Comment & Follow :) This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
ILong
by SMPTrader
$SNE June Update*This is not financial advice, so trade at your own risks* *My team digs deep and finds stocks that are expected to perform well based off multiple confluences* *Experienced traders understand the uphill battle in timing the market, so instead my team focuses mainly on risk management* Recap: My team entered into $SNE at 92.33 after its correction from $118 down to $90. $SNE currently sits at just $99.25 per share. My team is averaging up here at $99.25 and still remain long on our take profit at $145. If you want to see more, please like and follow us @SimplyShowMeTheMoney
CAPITALCOM:SNELong
by SimplyShowMeTheMoney
$20,000 BY JULY 1ST (BTC) OSCILLATOR OVERBOUGHT FOR 7+ DAYS Good afternoon, First of all, please hit that like button or leave a comment! 👍 Second of all, shoutout to my counter traders you're now tapped at the top. Third of all, we've seen 2 fake outs over the past 3 days which may result in trapping bulls and liquidating them. If you seen my last post or follow my twitter (YurloYT) you'd know I've been talking about the idea this may of been a fake out before heading towards $34,000 ish and if we hit that zone its likely we won't stop. Lastly, the fact this is happening during the Miami bitcoin press conference is PRICELESS. (Daily momentum oscillator has been overbought for 7+ days, we've seen 2 fake outs with a significant dump shortly after. If the next 2 support levels fail we probably see the next capitulation phase sooner than everyone expects, and no this isn't financial advice, just my personal bias) Don't get trapped you won't like being liquidated in leveraged longs once the dump REALLY starts. Once liquidations start going off it will cause extreme panic and fear which will increase the sell off pressure. (you've seen nothing yet)
BITSTAMP:BTCUSDShort
by YurloTrades
14
Commodities and Construction Market - Deep Analysis14th Aug 2018 FUNDAMENTAL ANALYSIS The analysis that follows in my discussion is quite deep, be prepared for some solid insight into the market for commodities, global economic analysis and the current situation of this 'trade war'. As such, I will endeavour to succinctly tie up fundamental and technical analysis to provide you with a good understanding of the market for construction metals and materials. These include: copper, lead, iron ore, zinc, aluminium, lumber wood and to a lesser extent nickel, platinum and other rare-earth metals. The reason why the global construction will affect those metals and materials, is that most of the mass building done in China and US (the two largest economies with high average GDP growth rates) will rely heavily upon those commodities. For example, residential property developments will use a large amount of lumber wood as a structure, copper will be used for wiring approximately 65% is used in electrical applications* (switch gear, wiring and circuitry, semi-conductors, conductors and transformers) and 25% is used directly in construction for industrial applications (Irrigation and agricultural sprinkler systems, piping at distillation plants, seawater feed lines). *https://www.thebalance.com/copper-applications-2340111 As we all know China and US are having a bit of diplomatic relation strains. The Cold War mentality of a burgeoning trade war does not bode well for the global economic climate. In fact today, Reuters news released an article stating that China is hoping to expedite plans of investment: " The Chinese government is expediting plans to invest billions of dollars in infrastructure projects as its economy shows signs of cooling further, with investment growth slowing to a record low and consumers turning more cautious about spending." "With its trade war with the United States threatening to pile more pressure on China’s already slowing economy, Beijing on Tuesday reported downbeat economic data, rolled out a $14 billion urban railway plan and pushed local governments to speed up issuance of special bonds for funding infrastructure projects." www.reuters.com The implications of declining investment is that aggregate demand falls (AD = Consumption + Investment (private)+ Government Expenditure (investment) + Net Exports), enabling a lower economic growth rate. The reason why economic growth increases and decreases are important to the commodity market for construction metals and materials, is that increases in economic growth are highly correlated to increases in those commodities. China, in particular has a urgent need to spend on 'infrastructure projects' or otherwise capital goods -goods that are used in producing other goods, rather than being bought by consumers. This is a just fact that China is an emerging economy with a high population, so has greater need to spend on improving infrastructure than the US. So my analysis continues that by having a trade war, tariffs, subsidies, quotas and other protectionist policies become the main bargaining tool. This puts considerable risk on global economic growth, as naturally trade quantities and values lower due to a greater inefficiency in the production and exportation of goods. As this risk increases, business investment gets put on hold so less construction of new buildings, warehouses, storage facilities etc. This decrease in investment will be multiplied throughout the economy (the multiplier effect) and a perhaps $250B decrease in business investment actually has a $1B to $1.25B actual effect on the economy. The effect on commodity prices is that a trade war decreases demand and supply for exports, which leads to a decrease in economic growth, leads to a decrease in investment, leads to a smaller intention for businesses to expand or do construction, which leads to a huge decrease in demand for building supplies, leads to a decrease in the price of crucial metal and material construction commodity prices. See how it is very important to follow the money trail. The economics is really important for long to medium commodity trading and prices as economic growth always reflects a demand for raw materials i.e commodities. Strong economists out there may comment to me, " you forgot about the time lag, decreased demand in copper doesn't happen over night". Well, yes but there are two major fundamental factors affecting it. The first one being that the financial markets (all globally traded markets including that pesky bitcoin) always reflect the most recent information as speculators (you and me) are merely hoping to make a profit not actually take delivery of 1000 tonnes of iron ore. Speculators represent the majority of financial market participants, look at FX, only a very small percentage of buyers and sellers are trading currency to settle imports and exports. That's why when economic data comes out or major events unfold (think Brexit and GBPUSD) changes happen within a couple of minutes. The other crucial factor is that lack of trustworthy in the Trump Administration by world leaders in business and commerce don't want to see how 'it plays out'. They will not take such risks, so will be risk averse, putting even more pressure to halt any type of capital expenditure. The market will reflect this sentiment. TECHNICAL ANALYSIS This neatly bring me on to my technical analysis. In the chart, I have two securities: Copper (line is copper colour) and NAIL - a leveraged ETF that provides 3X exposure to home construction and supplies businesses operating in the US. I have put these two together as they show a strong price correlation as copper is commonly used in homebuilding industry. As you can see, the inclines, declines, tops and bottoms are quite similar. Copper, after falling from its high, has developed a descending triangle. This is the most significant triangle pattern as it shows a quite a strong bullish outlook. The support line is horizontal, showing that bears have failed to push it lower, and a decline a resistance line also states that the bears are running out of momentum. Also, there is low volume, always a good signal that major move is coming usually but not always bullish. (I think I read it was like 71% success rate of bullish outcomes following a descending triangle, but don't quote me). There are two momentum indicators colour-coded for ease of reference. So Copper Momentum is trading in a bullish price channel indicating that there is a strong bullish sentiment, albeit not yet reflected in the price. It provides some insight to a potential reversal coming. Also, NAIL ETF has developed a price descending wedge. Given it is descending and following a recent bottom, it points quite strongly to a bullish breakout. Further consolidating this point, is that NAIL momentum indicator is also in a triangle pattern. Triangle patterns can go either way, and it is incredibly hard to determine which way it will break out. All I know definitively, is that following a triangle breakout, the price can trend 1 to 1.618 even 2.618 the vertical height of the triangle, so be ready for a break out. Also, I have constructed another correlation chart with lumber wood futures and NAIL ETF, it shows a similar representation of the current chart, however there is an almost perfect 5 month time lag. I'm not yet confident on my analysis for that pairing yet but it still provides some insights that can be related to my analysis here. I have linked it at the bottom. Take a look, its very interesting. Link: A very important point to consider for NAIL ETF, is that rising interest rates play havoc on mortgages which is an extension of home owner and investment property mortgages. This is also a another variable that will negatively impact the NAIL ETF, however, I am not sure to what extent it manipulates price. CONCLUSION Combining all my analysis both fundamental and technical, I can conclude that the commodity market is at a general 12 month low. This is the result of downgraded global economic growth forecasts at the beginning of 2018, a significant equities and cryptocurrency correction as well as the worsening trade war between the world's two biggest and most important economies in the world. As a result, the broader economic situation has put significant selling pressure on commodities, with declines more pronounced in construction metals and materials. This is most likely due to the fact that the demand for capital good spending for both economies has declined given tangible impedances to economic growth for both China and US. The market sentiment has changed quite rapidly since January of 2018. As economists and market analysts have increasingly pointed out, there is a range of serious issues affecting the global economy and it seems to be spiralling out of control. At this stage, my analysis points out that my long term view(6 to 18 months) is quite bearish, there are no signs of negotiation in the trade war, the equities market has posted its high in January, increasing interest rates, approaching a yield curve inversion - a sign of short term angst and instability (GFC was reported to have a inverted yield curve) and no safety nets such as the global investment and global commodities boom that helped us get past the GFC so quickly. So naturally I have a bearish outlook, unless there is a major change in trade war negotiation or the like, we are poised to slowly reach 2016 commodity price lows. My short term view is however, slightly bullish, at least for copper. As both securities are showing strong divergence in price and momentum, and both showing bullish chart patterns, I am 70% confident that a short term bullish trend may evolve, however no longer than a month. Also, my view is consolidated by China's recent decision to issue considerable amount of treasury bonds to finance its plans for capital goods and infrastructure. As such, a demand in iron ore, copper, aluminium and lead is feasible, pushing up those prices. However, the extend of the price rise is directly related to the amount of capital expenditure they plan to do. Nevertheless, a short term trend reversal seems probable given all the information available. That's my analysis, I hope you enjoyed it. I know its long but I spent a lot of time writing it and researching. Please give a like, comment and follow. This is the quality I give.
OANDA:XCUUSD
by Dubsta000
Bullish strong momentsBased on my analysis: It's for weeks I've waited the down move (to under 6K) to occur. It happened 2 days ago . I think we are in a real up period now for the days to come. The price should reach 6340 then 6840 USD. These are important steps to consolidate the up move. I've drawn these lines as green line on graph. I don't see any other sudden fall to go back below the 6K barrier. Except if there is another panic to occur, which I doubt. There should be a big resistance to form around 6600; and this may produce a range (channel) for some times. That resistance may occur due to the price rebounding on the green MovingAverage line. That green line will be a resistance to the bullish move. The price may also be shy to breach the gray line on graph. It should rebound due to a small resistance. But it should breach the gray ine anyway. If it resists it should fall to 6260 (green dotted line), but not for long, I think. Time will tell, but I think a really strong bullish moment is getting in formation. the 8K and 9K barrier are coming soon. But : don't take my words for granted, practice and analysis also by yourself.
BITFINEX:BTCUSDLong
by Atemak
1