SMI Ergodic Indicator/Oscillator

The SMI Ergodic Indicator/Oscillator is a sophisticated technical analysis tool that combines two powerful indicators in one comprehensive package: the Stochastic Momentum Index Ergodic Indicator (SMII) and the Stochastic Momentum Index Ergodic Oscillator (SMIO) histogram. This advanced momentum oscillator is designed to predict trend reversals with exceptional precision while filtering out market noise through ergodic smoothing.

✅ The script is available free of charge on the TradingView platform, under the MPL 2.0 open source license, for both personal and commercial use, provided proper attribution is given.

It can be accessed at the following URL:

https://www.tradingview.com/script/xBfBmWBD-SMI-Ergodic-Indicator-Oscillator/

☕ Donations are welcome to support and encourage my work.

🔥 Key Features & Competitive Advantages

Dual Indicator System:

• SMII (Primary Oscillator): Advanced momentum measurement with ergodic smoothing
• SMIO (Histogram): Visual representation of momentum divergence between oscillator and signal
• Unified Analysis: Both indicators work together for comprehensive market assessment

Advanced Calculation Engine:

• Multiple Timeframe Support: Built-in HTF (Higher Timeframe) analysis with customizable periods
• 62 Moving Average Types: Choose from extensive MA library for optimal smoothing
• Flexible Source Input: Analyze any price data (close, open, hl2, ohlc4, custom formulas)
• Repainting Control: User-selectable repainting/non-repainting modes for different trading styles

Dynamic Zone Technology:

• Adaptive Overbought/Oversold Levels: Dynamic zones adjust to market volatility automatically
• Statistical Sampling: Configurable sample lengths for zone calculation (default 50 periods)
• Visual Zone Management: Color-coded zones with customizable percentile thresholds

Professional Alert System:

• Dual Alert Categories: Two independent alert systems for different trading strategies
• Zone-Based Filtering: Alerts can be filtered to trigger only inside or outside dynamic zones
• Cross-Over/Cross-Under Detection: SMI vs Signal line crossings with customizable levels
• Multi-Condition Alerts: 10 different alert types for comprehensive market monitoring

🎨 Advanced Visualization & Customization

Comprehensive Theme System:

• 25+ Color Themes: From spectrum gradients to professional monochrome schemes
• Separate Theming: Independent themes for SMI, Signal, and Histogram components
• User-Defined Colors: Complete color customization for personalized analysis
• Gradient Options: Smooth color transitions based on momentum strength

Dynamic Color Management:

• Value-Based Coloring: Colors change dynamically based on oscillator values
• Transparency Control: Adjustable transparency for overlays and fills
• Bar Coloring: Optional bar coloring based on trend direction and crossovers
• Multi-Level Gradients: Up to 6-level color gradients for histogram visualization

Professional Chart Integration:

• Clean Visual Design: Optimized for professional trading environments
• Customizable Levels: Define custom levels for theme-based coloring
• Fill Areas: Optional fills between oscillator and signal for trend visualization
• Center Line Options: Configurable center line with density control

📊 Advanced Analysis Tools

Trend Line Detection:

• Automatic Trendline Drawing: AI-powered trendline detection on oscillator
• Breakout Alerts: Real-time notifications when trendlines are broken
• Customizable Parameters: Adjustable lookback periods and breakout sensitivity
• Visual Labels: Optional labels for breakout confirmation

Divergence Analysis:

• Four Divergence Types: Regular/Hidden Bullish and Bearish divergences
• Dual Source Analysis: Analyze divergences on both SMI and Histogram
• Configurable Detection: Adjustable pivot lookback and range parameters
• Visual Confirmation: Color-coded divergence lines with optional labels

Multi-Timeframe Capabilities:

• HTF Integration: Seamless higher timeframe analysis
• Smoothed Mode: Interpolated values between HTF bars for smooth visualization
• Fixed or Multiple TF: Choose between fixed timeframes or chart multiples
• Non-Repainting Options: Historical analysis with confirmed HTF data

⚡ Technical Specifications

Core Algorithm:

• PineScript v5: Latest version with optimal performance
• TSI-Based Calculation: True Strength Index foundation with ergodic enhancement
• Dual Smoothing: Two-stage smoothing process for noise reduction
• Momentum Ratio: Precise ratio of smoothed price change to absolute price change

Performance Features:

• Library Integration: Utilizes professional MovingAveragesProxy and MomentumIndicators libraries
• Optimized Code: Efficient calculations for real-time analysis
• Memory Management: Smart caching for multi-timeframe operations
• Fast Execution: Optimized for high-frequency updates

Professional Standards:

• Open Source: Full transparency with Mozilla Public License 2.0
• Documented Code: Comprehensive inline documentation
• Error Handling: Robust validation and error management
• Version Control: Regular updates and improvements

🎯 Trading Applications

Signal Generation:

• Cross-Over Signals: SMI crossing above/below signal line
• Zone Breakouts: Entry/exit signals based on dynamic zone violations
• Trend Confirmation: Histogram direction confirms price momentum
• Multi-Timeframe Confluence: HTF confirmation for higher probability trades

Risk Management:

• Dynamic Zones: Adaptive overbought/oversold levels for position sizing
• Divergence Warnings: Early warning system for potential reversals
• Trend Line Breaks: Stop-loss and take-profit level identification
• Alert Integration: Automated notification system for hands-free monitoring

Market Analysis:

• Momentum Assessment: Measure strength of price movements
• Trend Direction: Clear visual indication of market direction
• Reversal Detection: Early identification of potential trend changes
• Market Structure: Understanding of support/resistance through dynamic zones

🔧 Setup & Configuration

Easy Installation:

1. Copy the script to TradingView Pine Editor
2. Add to chart and configure basic parameters
3. Customize themes and alerts to your preference
4. Set up multi-timeframe analysis if needed

Recommended Settings:

• SMI Length: 13 periods (default) for balanced sensitivity
• Smoothing: 5 periods for optimal signal clarity
• Dynamic Zones: 90th percentile for standard volatility markets
• Alerts: Configure based on your trading strategy and timeframe

Professional Tips:

• Use higher timeframes for trend confirmation
• Combine with volume analysis for stronger signals
• Apply different themes for different market conditions
• Set up multiple alert conditions for comprehensive coverage

💎 Why Choose This SMI Ergodic Indicator?

1. Complete Solution: Two indicators in one with unified interface
2. Professional Grade: Institutional-quality analysis tools
3. Highly Customizable: Adapt to any trading style or market condition
4. Advanced Features: Cutting-edge technical analysis capabilities
5. Proven Algorithm: Based on respected TSI methodology with ergodic enhancements
6. Active Development: Regular updates and feature improvements
7. Community Support: Open-source with active development community
8. Educational Value: Learn advanced momentum analysis techniques

This SMI Ergodic Indicator/Oscillator represents the pinnacle of momentum analysis tools, combining sophisticated algorithms with intuitive visualization and comprehensive customization options. Whether you're a day trader seeking precise entry/exit signals or a swing trader looking for trend confirmation, this indicator provides the professional-grade analysis tools you need to make informed trading decisions.

Perfect for: Professional traders, technical analysts, algorithm developers, and anyone serious about momentum-based trading strategies.