The SMI Ergodic Indicator is the same as the True Strength Index (TSI) developed by William Blau, except the SMI Ergodic includes a signal line. The SMI uses double moving averages of price minus previous price over 2-time frames. The signal line, which is an EMA of the SMI, is plotted to help trigger trading signals. If the SMI crosses below the signal line, a sell signal will be generated. Conversely, if the SMI crosses above the signal line, a buy signal will be given.
