Engineering Alpha

Engineering Alpha

The Squeeze Momentum Indicator

A Thorough Introduction to a Beautiful Indicator

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
May 28, 2026
∙ Paid

The market spends most of its time doing nothing. Consolidating. Chopping. Faking people out.

And then, seemingly out of nowhere, it explodes—up or down—and everyone scrambles to catch the move.

That’s where the Squeeze Momentum Indicator (SMI) comes in. It doesn’t predict direction, but it does something just as valuable: it tells you when the market is …

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