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Indicator Formula

Technical Details — SMI Ergodic Indicator (SMIErgodic)

Section titled “Technical Details — SMI Ergodic Indicator (SMIErgodic)”

Overview

Section titled “Overview”

The SMI Ergodic Indicator calculation produces a n unbounded oscillator measuring momentum.

Mathematical Derivation

Step 1 — Calculate SMIErgodic

Section titled “Step 1 — Calculate SMIErgodic”

Purpose: Derive the SMI Ergodic Indicator value.

See the SMI Ergodic Indicator formula derivation in technical references.

Where:

  • Period parameters control lookback sensitivity

What This Measures: Momentum strength and direction

Compact Formula Summary

Refer to SMI Ergodic Indicator formula for compact notation.

Defaults: Fast Period = 5 bars, Slow Period = 20 bars

Complete Calculation Example

See the SMI Ergodic Indicator technical documentation for worked calculation examples.

Key Takeaways from the Example
  1. Period sensitivity: Shorter periods = more signals, longer = smoother
  2. Threshold selection: Adjust based on asset volatility
  3. Signal line: Smoothed version for crossover timing