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.
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.
Author: Andrey N. Bolkonsky
newdigital, 2013.09.03 08:50
True Strength Index