SMI Trigger System

SMI TRIGGER SYSTEM - DESCRIPTION

Overview
SMI Trigger System is a momentum oscillator that identifies trend changes and reversals using the Smoothed Stochastic Momentum Index (SMI). Features a color-changing line (green = bullish, red = bearish), cloud shading for momentum zones, and triangle markers that appear exactly when momentum flips.
What Makes It Unique:

Real-time color-changing momentum line
Cloud shading split at zero line
Triangle triggers at exact momentum flip points
Overbought/oversold limit lines
Built-in alerts for all key signals
Fully customizable appearance
Works on all timeframes

How to Use
THE DISPLAY

Green line/cloud: Bullish momentum
Red line/cloud: Bearish momentum
Above zero: Bulls in control
Below zero: Bears in control
Upper limit (+40): Overbought
Lower limit (-40): Oversold

SIGNALS
🟢 Green Triangle (▲) - Momentum flipping bullish. Buy signal, most powerful below zero.
🔴 Red Triangle (▼) - Momentum flipping bearish. Sell signal, most powerful above zero.
TRADING STRATEGIES
1. Trend Following

In uptrends: Only take green triangles, ignore red
In downtrends: Only take red triangles, ignore green
Use higher timeframe for trend, lower for entries
Example: Daily uptrend → trade green triangles on 1H chart

2. Limit Reversals

Red triangle at upper limit (+40) = strong reversal signal, go short
Green triangle at lower limit (-40) = strong reversal signal, go long
Wait for triangle AND price confirmation
Most reliable on 4H/Daily timeframes

3. Zero Line Trading

SMI crosses above zero → bullish bias, take green triangles
SMI crosses below zero → bearish bias, take red triangles
Zero acts as momentum baseline

4. Divergence Setups

Price higher high + SMI lower high = bearish divergence → take next red triangle
Price lower low + SMI higher low = bullish divergence → take next green triangle
Most powerful at overbought/oversold limits

ENTRIES & EXITS

Enter: On triangle appearance
Stop: Beyond recent opposite-color triangle
Target: Limit levels or opposite triangle
Add: Additional same-color triangles in strong trends

TIMEFRAME GUIDE

Scalping (1-5m): Lower %K to 3-4, take all trend-aligned triangles
Day trading (15-60m): Default settings (5/3), focus on limit reversals
Swing trading (4H-Daily): Higher %K to 7-10, trade only extreme readings

ADJUSTING SENSITIVITY
SMI %K Length (default: 5):

Lower (3-4) = More signals, faster - good for scalping
Higher (7-10) = Fewer signals, stronger - good for swing trading

SMI %D Length (default: 3):

Lower (1-2) = More responsive
Higher (5-7) = Smoother

ALERTS
Built-in alerts for:

Triangle appears (momentum flips)
SMI crosses zero (trend change)
SMI crosses limits (overbought/oversold)

Enable in settings, configure in TradingView alert dialog.
CUSTOMIZATION

Toggle cloud/triangles on/off
Adjust triangle size and positioning
Customize all colors
Triangle label cap prevents clutter

Key Settings
SMI %K Length (default: 5): Controls sensitivity and signal frequency
SMI %D Length (default: 3): Controls smoothing
SMI Limit (default: 40): Overbought/oversold threshold
Show SMI Cloud (default: ON): Cloud shading
Show SMI Flip Triangles (default: ON): Trigger markers
Triangle Size/Offset: Appearance customization
Enable Alerts (default: ON): Alert notifications

Key Features
✅ Color-changing momentum line
✅ Cloud shading for momentum zones
✅ Triangle triggers at exact flips
✅ Overbought/oversold limits
✅ Built-in alert system
✅ Fully customizable
✅ All timeframes
✅ Adjustable sensitivity

NPR21
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView.