The Ergodic MDI Oscillator as a Colored Histogram and Signal Cloud

Summary

The document describes an implementation of William Blau’s Ergodic MDI Oscillator, an indicator associated with momentum, direction, and divergence analysis. Its output is presented as a colored histogram, with the signal line represented by a colored cloud. This explains the indicator’s visual form and its broad analytical context, but does not describe the calculation or give rules for interpreting particular readings.

The implementation depends on a separate smoothing-algorithm library that must be available to the trading terminal. The document points readers toward an accompanying explanation of the library’s averaging methods, but provides no parameter settings, market examples, backtest results, or evidence of trading performance. Treat it as a brief description of an indicator implementation rather than a complete guide to using the oscillator or assessing its effectiveness.

Key ideas

• The indicator is based on William Blau’s work on momentum, direction, and divergence.
• It displays the oscillator as a colored histogram and the signal line as a cloud.
• Its implementation relies on a separate smoothing-algorithm library.
• The document does not specify interpretation rules, settings, or performance evidence.

Tags

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