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SMIErgodic Overview

The SMI Ergodic Indicator is a double-smoothed momentum oscillator that measures the difference between current close and the midpoint of the high-low range, normalized by the range. It provides smooth momentum readings with less noise than single-smoothed oscillators.

SMI Ergodic is similar to TSI but uses a different normalization, making it particularly effective for identifying momentum exhaustion.

How SMI Ergodic Indicator Works

Section titled “How SMI Ergodic Indicator Works”

Core Concept

Section titled “Core Concept”
  1. Calculate SMIErgodic value from the input price/volume data
  2. Apply smoothing if applicable
  3. Compare to threshold or signal line for signal generation
  4. Interpret: Signals indicate momentum direction or extremes

Key Characteristics:

  • Momentum Indicator = Measures momentum direction and strength
  • Signal Line Available = Threshold-based signals only
  • Bounded = No (unbounded)

Visual Interpretation

Section titled “Visual Interpretation”

SMIErgodic Behavior:

  • Bullish momentum
  • Bearish momentum

Trading Signals Available on Reversion

Section titled “Trading Signals Available on Reversion”

These are the signal names you select when configuring SMIErgodic in the algorithm builder or via the MCP agent:

SignalTriggers WhenTypical Use
smiErgodic_above_thresholdSMI Ergodic value rises above thresholdBullish momentum
smiErgodic_below_thresholdSMI Ergodic value falls below thresholdBearish momentum

Display: Separate pane

Category: Momentum

Threshold range: Unbounded (centered on zero)

Key Characteristics

Section titled “Key Characteristics”

What SMI Ergodic Indicator Does Well:

  • Clear Directional Signals
  • Combines well with trend filters
  • Threshold-based signals for entry timing