Blau_Ergodic - indicator for MetaTrader 5

Author: Andrey N. Bolkonsky

Ergodic Oscillator by William Blau is based on True Strength Index indicator (see Momentum, Direction, and Divergence: Applying the Latest Momentum Indicators for Technical Analysis).

To indicate the trend reversal, the signal line is used.

• Buy signal: upward crossover of the signal line.
• Sell signal: downward crossover of the signal line.

The signal line is calculated using the smoothing of a base line (Ergodic, True Strength Index), the averaging period is equal to the last averaging period of a base line.

The trend is upward when base line above the signal line, the trend is downward when base line below the signal line.

• WilliamBlau.mqh must be placed in terminal_data_folder\MQL5\Include\
• Blau_Ergodic.mq5 must be placed in terminal_data_folder\MQL5\Indicators\

Calculation:

Ergodic oscillator is calculated by formula:

where:

• Ergodic() - base line - True Strength Index TSI(price,q,r,s,u);
• SignalLine() - signal line - exponentially smoothed moving average with period ul, applied to Ergodic;
• ul - averaging period of a signal line (according to Willam Blau, it must be equal to last averaging period (>1) of the Ergodic line. For example Ergodic(price,q,r,s,u)=Ergodic(price,2,20,5,1), in this case ul=s=5.

Input parameters:

• graphic plot #0 - Ergodic (True Strength Index):
• q - Momentum averaging period (by default q=2);
• r - period of the 1st EMA, applied to Momentum (by default r=20);
• s - period of the 2nd EMA,  applied to result of the first smoothing (by default s=5);
• u - period of the 3rd EMA, applied to result of the second smoothing (by default u=3);
• graphic plot #1 - Signal line:
• ul - Smoothing period of the signal line, applied to base line (by default ul=3);
• AppliedPrice - price type (by default AppliedPrice=PRICE_CLOSE).

Note:

• q>0;
• r>0, s>0, u>0. If r, s or u =1, smoothing is not used;
• ul>0. If ul=1, the signal and base lines are the same;
• Min. rates =(q-1+r+s+u+ul-4+1).