SMI Ergodic Indicator

Trading Ergodics with the Trend - Rules

  1. Enter or hold position only when slope of Ergodic Signal line has the same direction as the trend
  2. Stand aside when slope of Ergodic Signal Line is in the opposite direction of trend
  3. Enter or exit position when Ergodic and its Signal Line cross

Presentation

chart

The Ergodic Indicator is implemented in Investor/RT using RTL, thus the Professional Edition is required to utilize the indicator. An example Ergodic chart can be downloaded and imported into Investor/RT. Click on the Examples tab above.

Formula

By default, TSI is setup with a Short Term of 5 and a Long Term of 20 and EMA is setup with a period of 5.

SMI Ergodic Chart

Ergodic = TSI
Ergodic Signal Line = EMA(TSI)
Ergodic Oscillator = TSI - EMA(TSI)

By default, TSI, the True Strength Index is setup with a Short Term of 5 and a Long Term of 20 and EMA is setup with a period of 5.

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