Whereas the 'D' lines in the chart represent a multitude of moving trend lines shunted forward by half a cycle, the thin purple line in the subchart is the 4hr SMI indicator also shunted forward by half a cycle. Of course, finding the original settings that work for you is essential but once done, why not play around with them. What I am trying to do with the SMI is isolate areas where momentum changed before and in that same cycle where it might change again. As I said in the last post, this is not about finding tops and bottoms per se (well not by using the indicators on their own) but attempting to identify when changes in momentum may occur in the future, to help identify likely patterns in advance, when combined with my other work.
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