Unlocking the Ergodic CMI Oscillator: A Trader's Guide

Author: Andrey N. Bolkonsky

The Ergodic CMI-Oscillator, rooted in the Candlestick Momentum Index, is a powerful tool introduced by William Blau in his insightful book, "Momentum, Direction, and Divergence: Applying the Latest Momentum Indicators for Technical Analysis".

Make sure to place WilliamBlau.mqh in your terminal_data_folder\MQL5\Include\
Drop Blau_CMI.mq5 into your terminal_data_folder\MQL5\Indicators\

Ergodic CMI-Oscillator by William Blau

Calculation Breakdown:

The Ergodic CMI-Oscillator is calculated as follows:

Ergodic_CMI(price1, price2, q, r, s, u) = CMI(price1, price2, q, r, s, u)

SignalLine(price1, price2, q, r, s, u, ul) = EMA(Ergodic_CMI(price1, price2, q, r, s, u), ul)

Where:

Ergodic_CMI() - The Ergodic Candlestick Momentum Index CMI(price1, price2, q, r, s, u);
SignalLine() - The Signal Line, which is an exponentially smoothed moving average EMA(ul), applied to the Ergodic;
ul - The period of the signal line.

Input Parameters:

Graphic Plot #0 - Ergodic (Candlestick Momentum Index):

q - Number of bars used in the calculation of Candlestick Momentum (default is q=1);
r - Period of the 1st EMA(r), applied to Candlestick Momentum (default is r=20);
s - Period of the 2nd EMA(s), applied to the result of the 1st smoothing (default is s=5);
u - Period of the 3rd EMA(u), applied to the result of the 2nd smoothing (default is u=3);

Graphic Plot #1 - Signal Line:

ul - Period of the Signal Line - EMA(ul), applied to Ergodic (default is ul=3);

AppliedPrice1 - Price type (default is AppliedPrice1=PRICE_CLOSE);
AppliedPrice2 - Price type (default is AppliedPrice2=PRICE_OPEN).

Important Notes:

Ensure q>0;
r>0, s>0, u>0. If r, s, or u equal 1, smoothing is not applied;
ul>0. If ul=1, the signal and main lines will coincide;
Minimum rates = (q-1+r+s+u+ul-4+1).

Unlocking the Ergodic CMI Oscillator: A Trader's Guide

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