SMI Ergodic Oscillator: TSI Signal-Line Crossings

Summary

The SMI Ergodic Oscillator is described as the difference between the True Strength Index (TSI) and an exponentially smoothed signal line. Its three adjustable lengths control the primary and secondary smoothing used in the TSI calculation and the smoothing of the signal line.

The document presents zero-line crossings as possible trade signals: a move from below zero to above zero after an extended period below zero may indicate a long opportunity; the reverse move after an extended period above zero may indicate a short opportunity. It provides no performance data, testing method, or rules for defining an extended period. These crossings are therefore presented as potential signals, not validated entry rules; the description does not address risk controls or confirmatory filters.

Key ideas

• The oscillator measures the difference between TSI and its smoothed signal line.
• Its calculation uses separate lengths for primary smoothing, secondary smoothing, and signal-line smoothing.
• A zero crossing from below may suggest a long entry after an extended period below zero.
• A zero crossing from above may suggest a short entry after an extended period above zero.
• The document provides no evidence that these signals are profitable.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.