Multi SMI Ergodic Oscillator

2023년 1월 16일

The Multi SMI Ergodic Oscillator (Multi SMIEO) indicator can be used to identify potential buy and sell signals based on the relationship between the TSI and EMA lines.

The script is creating an indicator that plots multiple (3) sets of Time Series Indicator (TSI-Indicator) and Exponential Moving Average (EMA-Signal) lines as a single indicator.

The TSI is a momentum oscillator that helps identify overbought and oversold conditions. It is calculated using the close prices of an asset, a short-term moving average, and a long-term moving average. The script uses three different pairs of input values for the short-term and long-term periods, which can be adjusted by the user.

The EMA is a type of moving average that gives more weight to recent prices. It is calculated by applying a weighting factor to the most recent price, and then adding that weighted value to the previous EMA value. The script uses three different input values for the length of the EMA, which can also be adjusted by the user.

After calculating the TSI and EMA for each set, the script plots them on the same graph, with different colors and widths to differentiate them. The three sets of TSI and EMA lines are plotted to allow the user to compare the results of different periods. The script also plots a horizontal line at zero, which is used as a reference point for the oscillations of the indicator lines.

One way to use this indicator is to look for crossovers between the TSI and the EMA lines. A bullish crossover occurs when the TSI crosses above the EMA. This suggests that the buying pressure is increasing and a potential buy signal is generated. A bearish crossover occurs when the TSI crosses below the EMA. This suggests that the selling pressure is increasing and a potential sell signal is generated.

Some other ways that the indicator can be used include:

1. Identifying trends: The TSI and EMA lines can be used to identify the direction of the trend. An uptrend is present when the TSI and EMA lines are both trending upwards, while a downtrend is present when the TSI and EMA lines are both trending downwards.

2. Overbought and oversold conditions: The TSI can be used to identify overbought and oversold conditions. When the TSI is above the upper limit of the range, the asset is considered overbought and may be due for a price correction. Conversely, when the TSI is below the lower limit of the range, the asset is considered oversold and may be due for a price rebound.

3. Confirming price action: The Multi SMIEO indicator can be used to confirm price action. If a bullish divergence is present, it confirms a potential bullish reversal. If a bearish divergence is present, it confirms a potential bearish reversal.

4. Multiple time frame analysis: By using different periods for the TSI and EMA lines, the indicator can be used to analyze the asset on multiple time frames. It can be useful to compare the results of different periods to get a better understanding of the asset's price movements.

5. Risk management: This indicator can be used as an element of risk management strategy, it can help traders to identify overbought and oversold conditions to set stop loss or take profit levels.

The Multi SMI Ergodic Oscillator (Multi SMIEO) is a versatile indicator that can be used in a number of ways to analyze the price movements of an asset. It can be used to identify potential buy and sell signals, trends, overbought and oversold conditions, and to confirm price action. By using different periods for the TSI and EMA lines, the indicator can also be used to analyze the asset on multiple time frames. However, it is important to remember that indicators are based on historical data, and past performance does not guarantee future results.

It is important to use the indicator as part of a comprehensive trading strategy that includes risk management and other analysis techniques, such as fundamental and technical analysis. It is also important to keep in mind that indicators are not a standalone solution for trading, they should be used in conjunction with other market analysis and research techniques to generate better results.

Lastly, it is important to keep in mind that trading in financial markets comes with a certain level of risk and it is crucial to always have a proper risk management plan in place. Never invest more than you can afford to lose.

2023년 4월 18일

릴리즈 노트

V2: I have made some changes to the script to include more SMI bands (as well ad modifications to the values associated with the existing ones) as well as removed signal lines with all SMI's excluding the fastest. This should offer the user the benefit of having a cleaner and smoother visual of the overall indicator.

The Multi SMI Ergodic Oscillator V2 (Multi SMIEO V2) indicator can be used to identify potential buy and sell signals based on the relationship between the TSI and EMA lines.

The script is creating an indicator that plots multiple (7) sets of Time Series Indicator (TSI-Indicator) and one Exponential Moving Average (EMA-Signal) line as a fast length single indicator.

The TSI is a momentum oscillator that helps identify overbought and oversold conditions. It is calculated using the close prices of an asset, a short-term moving average, and a long-term moving average. The script uses seven different pairs of input values for the short-term and long-term periods, which can be adjusted by the user.

The EMA is a type of moving average that gives more weight to recent prices. It is calculated by applying a weighting factor to the most recent price, and then adding that weighted value to the previous EMA value. The script uses three different input values for the length of the EMA, which can also be adjusted by the user.

After calculating the TSI and EMA for each set, the script plots them on the same graph, with different colors and widths to differentiate them. The seven sets of TSI and EMA lines are plotted to allow the user to compare the results of different periods. The script also plots a horizontal line at zero, which is used as a reference point for the oscillations of the indicator lines.

One way to use this indicator is to look for crossovers between the TSI and the EMA lines. A bullish crossover occurs when the TSI crosses above the EMA. This suggests that the buying pressure is increasing and a potential buy signal is generated. A bearish crossover occurs when the TSI crosses below the EMA. This suggests that the selling pressure is increasing and a potential sell signal is generated.

Some other ways that the indicator can be used include:

1. Identifying trends: The TSI and EMA lines can be used to identify the direction of the trend. An uptrend is present when the TSI and EMA lines are both trending upwards, while a downtrend is present when the TSI and EMA lines are both trending downwards.

2. Overbought and oversold conditions: The TSI can be used to identify overbought and oversold conditions. When the TSI is above the upper limit of the range, the asset is considered overbought and may be due for a price correction. Conversely, when the TSI is below the lower limit of the range, the asset is considered oversold and may be due for a price rebound.

3. Confirming price action: The Multi SMIEO indicator can be used to confirm price action. If a bullish divergence is present, it confirms a potential bullish reversal. If a bearish divergence is present, it confirms a potential bearish reversal.

4. Multiple time frame analysis: By using different periods for the TSI and EMA lines, the indicator can be used to analyze the asset on multiple time frames. It can be useful to compare the results of different periods to get a better understanding of the asset's price movements.

5. Risk management: This indicator can be used as an element of risk management strategy, it can help traders to identify overbought and oversold conditions to set stop loss or take profit levels.

The Multi SMI Ergodic Oscillator (Multi SMIEO) is a versatile indicator that can be used in a number of ways to analyze the price movements of an asset. It can be used to identify potential buy and sell signals, trends, overbought and oversold conditions, and to confirm price action. By using different periods for the TSI and EMA lines, the indicator can also be used to analyze the asset on multiple time frames. However, it is important to remember that indicators are based on historical data, and past performance does not guarantee future results.

It is important to use the indicator as part of a comprehensive trading strategy that includes risk management and other analysis techniques, such as fundamental and technical analysis. It is also important to keep in mind that indicators are not a standalone solution for trading, they should be used in conjunction with other market analysis and research techniques to generate better results.

Lastly, it is important to keep in mind that trading in financial markets comes with a certain level of risk and it is crucial to always have a proper risk management plan in place. Never invest more than you can afford to lose.

1월 6일

릴리즈 노트

As requested by Shinatra after seeing some changes, I have updated the Indicator to my latest personal release. It is essentially the same as before but without the pesky signal line and an added new color scheme. Have fun. Trade safe.