Tag: Sideways Market Indicator


Sideways Market Indicator (SMI) is a technical analysis tool used to identify sideways markets. It measures the magnitude and direction of price action and can be used to identify periods of trendless or non-trending price action. SMI is a momentum indicator typically used to confirm changing trends in a stock or index. It is composed of two components; a longer-term trend indicator which measures the average price movement of a security over a predetermined interval, and a shorter-term oscillator which measures the velocity of price changes. SMI is designed to identify and isolate periods of sideways movement in a security’s price and can be used to anticipate future movements in the stock’s price. By understanding the characteristics of a sideways market, investors can better equip themselves to make more profitable trading decisions.