SMI Ergodic: double-smoothed price momentum (20 and 5 EMAs) with a 5-bar signal line, or as a histogram.
Overview
The SMI Ergodic Indicator shows smoothed momentum in its own pane, with a signal line in orange. In Oscillator display it plots the gap between the two as a histogram instead.
Histogram bars are green when growing and red when falling.
How it works
Take the one-bar change of the close. Smooth it with a 20-bar EMA, then a 5-bar EMA. Do the same with the absolute change. SMI = 100 x smoothed change / smoothed absolute change.
Signal = 5-bar EMA of SMI. The oscillator = SMI - signal.
How to use it
- Some traders watch SMI crossing its signal line.
- Use zero-line crosses as changes in momentum direction.
- Use the histogram view to see momentum speeding up or slowing.
- Look for divergence with price.
These are ways some traders read it, for learning. They are not trade signals.
Settings
| Setting | Default |
|---|---|
| Settings | |
| Long LengthLength of the first EMA smoothing applied to the momentum of the closing price. | 20 |
| Short LengthLength of the second EMA smoothing applied to the momentum of the closing price. | 5 |
| Signal LengthLength of the EMA of the SMI that forms the signal line. | 5 |
| DisplayIndicator plots the SMI and its signal line. Oscillator plots the difference between them as a histogram.Options: Indicator, Oscillator | Indicator |
| Style | |
| SMIColor of the SMI line while it sits exactly on its signal line. | #787b86 |
| SignalColor of the signal line. | #ff9800 |
| Oscillator GrowColor of the rising oscillator histogram, and of the SMI line while it leads its signal. | #089981 |
| Oscillator FallColor of the falling oscillator histogram, and of the SMI line while it lags its signal. | #f23645 |
Alerts
You can alert on its line crossing a value or the candle close (from the chart's + menu); checked while ZoroCharts is open.
Notes and limits
- Works on any symbol and timeframe; it only needs candle data.
- It is closely related to the True Strength Index.
Education only. Not financial advice. Indicators mark what happened on the chart; they do not predict what price will do. Trading futures, forex, crypto and other markets carries a high level of risk and may not be suitable for everyone.