SMI Color Red/Green

📌 TradingView Description – SMI Red/Green Momentum Line
🔥 Stochastics Momentum Index (SMI) – Dynamic Red/Green Version

This indicator is an enhanced and modernized version of the Stochastic Momentum Index (SMI), designed to deliver a more visual, intuitive, and responsive view of trend momentum.

It includes:

✔️ Smoothed SMI
✔️ Dynamic Red/Green momentum coloring
✔️ Signal EMA line
✔️ Overbought/Oversold zones with shading

🎨 Dynamic Red/Green SMI Line

The main SMI line automatically changes color based on momentum direction:

Green → Bullish momentum (SMI rising)

Red → Bearish momentum (SMI falling)

This provides instant visual feedback and highlights early momentum changes even before traditional signal-line crossovers.

📉 Indicator Structure
1️⃣ Smoothed SMI

The SMI is calculated using the price’s position inside its range and then smoothed with an SMA to reduce noise.

2️⃣ EMA Signal Line

A customizable EMA acts as a signal line, providing:

Clear bullish/bearish crossovers

Trend confirmation

Cleaner entry/exit signals

3️⃣ Overbought / Oversold Zones

Extreme levels are highlighted using color-filled zones:

Red Zone (Overbought) → potential bearish reversal

Green Zone (Oversold) → potential bullish reversal

Levels are fully adjustable.

💡 How to Use It

The indicator works exceptionally well across all timeframes.
The most powerful signals are:

✔️ SMI crossing above/below the EMA

SMI crosses above EMA → bullish signal

SMI crosses below EMA → bearish signal

✔️ Leaving Overbought/Oversold zones

SMI exits the oversold zone → potential long setup

SMI exits the overbought zone → potential short setup

✔️ Color shifts (momentum direction)

Red → Green : early bullish momentum

Green → Red : early bearish momentum

Perfect for scalping, day trading, and swing trading.

🚀 Why This Version Is Better

Extremely visual momentum reading

Noise reduction through smoothing

Instantly readable color-coded trend

Strong OB/OS zone visualization

Works on any market and timeframe

Great in combination with RSI, MACD, HMA, ALMA, and trend filters

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