From barchart dot com, just one paragraph apart.
“Traders believe that a market is bearish if its SMI Output is below 40. On the other hand, an SMI Output of above 40 for a particular market conceives a bullish trend.
The output of SMI varies between -100 and +100. In order to interpret the outcome of SMI, traders have developed specific trade points. Like, when SMI rises above the value of +40, a sell signal is indicated.
Why would you sell in a bullish trend? Or is bullish trend and sell signal not mutually exlusive, for some reason? Like it's too high so “was” a bullish trend, but no longer?
https://www.barchart.com/education/technical-indicators/stochastic_momentum_index
Leave a Reply