Combining SMI, CCI, and RSI into a Three-Signal Day-Trading Indicator

Summary

The Triple Function Indicator combines the Stochastic Momentum Index, Commodity Channel Index, and Relative Strength Index to produce a compact directional reading. Each indicator contributes a positive or negative signal when its stated threshold is crossed; otherwise, its contribution is left neutral. The contributions are summed, then transformed into a bounded output with upper and lower reference levels. The document presents this as a day-trading tool intended for a 10-minute chart and gives example threshold levels for all three indicators.

The explanation includes indicator settings and implementation logic, but it does not provide historical tests, trade records, or quantitative evidence for profitability. Its claim that the combination works in an overbought example is not substantiated with data. The signal rules also leave some conditions ambiguous: for example, the SMI negative test checks above its lower threshold, and neutral values may depend on how the platform initializes variables. The indicator is therefore best understood as a described signal-combination method, not a validated trading system.

Key ideas

• The indicator combines SMI, CCI, and RSI readings into one directional score.
• Each component uses threshold conditions to assign a positive or negative contribution, with other readings intended to be neutral.
• The combined score is transformed into a bounded output with upper and lower reference levels.
• The author intends the indicator for day trading on a 10-minute chart.
• The document supplies no backtest or other quantitative evidence supporting its performance claim.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.