Stochastic Momentum Index

The Stochastic Momentum Index, conceived by William Blau, indicates how the current CLOSE price deviates from the mid-point of the HIGH-LOW interval, built over a certain time interval. The result is an oscillator that moves between +100 and -100. When the closing price is higher than the mid-point of the range, the Stochastic Momentum Index is positive: Vice versa, it is negative. Normally a moving average is applied to the result of the Stochastic Momentum Index calculation in order to obtain more homogeneous values. When the moving average is used, the non-mediated value is called the Stochastic Momentum Index% K, while the mediated value is the Stochastic Momentum Index.
A BUY signal is generated when the Stochastic Momentum Index line crosses upward -40. A SELL signal is generated when the Stochastic Momentum Index line crosses down +40.