Adding MetaTrader 4 SMI Indices Technical Chart Indicator

Step 1: Open the Indices Trading Platform Navigator Window

Open the Navigator window as shown below; Go to “View” menu (click), then select the “Navigator” window (click), or From Standard Toolbar click the “Navigator” button or press short cut keyboard keys “Ctrl+N”

On the Navigator window, select “Indicators”, (Double Click)

How to Add SMI Stock Indexes Indicator on MT4 - MetaTrader 4 SMI Indices Indicator

Adding SMI MetaTrader 4 Indices Technical Chart Indicator

Expand the menu by clicking the expand button marker (+) or double click the “indicators” menu, after this the button will appear as (-) and will now display a list as shown below - select the SMI stock indices chart indicator from this list of stock indices indicators so as to add the SMI stock indexes technical indicator on the stock indexes trading chart.

From the Above window you can then place SMI indicator that you want on the Indices Trading chart

How to Put Custom SMI Stock Indexes Indicator on MetaTrader 4 and How to Install SMI Stock Indexes Indicator MetaTrader 4

If the stock indices indicator you want to add is a custom indicator - for example if the SMI indicator you want to add is a custom indicator you will need to first add this custom SMI indicator on the MT4 stock indexes trading platform and the compile the custom SMI indicator so that the newly added SMI custom indicator appear on the list of custom indicators on the MetaTrader 4 stock indexes trading platform.

To learn how to install SMI indicators on MetaTrader 4, how to add SMI indicator window to MetaTrader 4 and how to add SMI custom indicator on MT4 stock indexes trading platform - How to add a custom SMI indices trading Indicator on MT4.

About SMI Indices Indicator Tutorial

SMI Indices Technical Analysis and SMI Indices Trading Signals

Developed by William Blau.

The SMI is an adaptation of the classic Stochastic Oscillator that smoothes out the stochastic oscillations.

Construction of SMI

This indicator is calculated by comparing the stock indexes price relative to the average of an n number of periods.

Then instead of plotting these values directly, smoothing using an Exponential Moving Average is applied and then the values drawn to form the SMI.

When the closing stock indexes price is greater than the average of the range, the SMI will move up.

When the closing stock indexes price is less than the average of the range, the SMI will move down.

This oscillator ranges between the values of +100 and -100, this indicator is also less prone to whipsaws compared to the stochastic oscillator.

Indices Technical Analysis and Generating Indices Trading Signals

Buy and Sell Indices Trading Signals/ Crossover Signals

The SMI can be used to generate buy and sell stock indexes signals using the method shown below, Buy when the SMI is heading upwards and sell when its heading downwards.

Buy and Sell Indices Trading Signals/ Crossover Signals

Overbought/Oversold Level Crossovers

• Overbought levels above +40


• Oversold levels below -40

Buy signal is generated when this oscillator falls below oversold level and then rises above this level and starts to move upwards.

Sell Indices Trading Signal is generated when this oscillator rises above overbought level and then falls below this level and starts to move downwards.

Divergence Indices Trading

The example explained and illustrated below shows a bearish classic divergence between the stock indexes price and the SMI. When the SMI showed this divergence the stock indexes price indices trend reversed and started to move in a downward direction.

Bearish Divergence