Developed by William Blau, the Stochastic Momentum Index is similar to the Stochastic Oscillator. It differs in that it illustrates where the close is relative to the midpoint of the recent high/low range, rather than the close relative to the recent high/low as with the Stochastic Oscillator. The resulting oscillator ranges between -100 and +100 and can be less erratic than an equal period Stochastic Oscillator.

Chart courtesy of Prophet Financial Systems (www.prophet.net)