Author: Andrey N. Bolkonsky
If you're keen on enhancing your trading strategies, the Ergodic CSI Oscillator is one tool you won’t want to overlook. Developed by William Blau and discussed in his book "Momentum, Direction, and Divergence: Applying the Latest Momentum Indicators for Technical Analysis", this oscillator is based on the Candlestick Index.
- Make sure to place WilliamBlau.mqh in terminal_data_folder\MQL5\Include\
- Place Blau_Ergodic_CSI.mq5 in terminal_data_folder\MQL5\Indicators\
Ergodic CSI-Oscillator by William Blau
How It Works:
The CSI Oscillator is calculated using the following formulas:
Ergodic_CSI(price1,price2,q,r,s,u) = CSI(price1,price2,q,r,s,u)
SignalLine(price1,price2,q,r,s,u,ul) = EMA( Ergodic_CSI(price1,price2,q,r,s,u) ,ul)
Breaking it down:
- Ergodic_CSI(): This gives you the Ergodic line based on the Candlestick Index.
- SignalLine(): This is the Signal Line, which is an Exponential Moving Average (EMA) applied to the Ergodic line.
- ul: This refers to the period of the Signal Line.
Input Parameters:
- Graphic Plot #0 - Ergodic Line (Candlestick Index):
- q: Number of bars used for Candlestick Momentum calculation (default is q=1).
- r: Period of the first EMA applied to Candlestick Momentum (default is r=20).
- s: Period of the second EMA applied to the first smoothing result (default is s=5).
- u: Period of the third EMA applied to the second smoothing result (default is u=3).
- Graphic Plot #1 - Signal Line:
- ul: This is the period of the Signal Line, with EMA(ul) applied to the Ergodic line (default is ul=3).
- AppliedPrice1: This refers to the price type (default is AppliedPrice1=PRICE_CLOSE).
- AppliedPrice2: This is another price type (default is AppliedPrice2=PRICE_OPEN).
Important Notes:
- Ensure that q>0.
- For r, s, or u, ensure they are greater than zero. If any are equal to 1, no smoothing is applied.
- ul>0. If ul=1, the Signal Line and Ergodic Lines will be identical.
- Minimum rates = (q-1+r+s+u+ul-4+1).
Now that you have a better understanding of the Ergodic CSI Oscillator, it’s time to give it a try in your trading strategies. It could be the edge you’ve been searching for!
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