Ergodic Oscillator by William Blau

Related: long-term trend trix oscillator for metatrader 5 - another powerful indicator for MetaTrader 5 traders.

The Ergodic Oscillator, developed by William Blau, is an indicator designed to signal trend reversals.

Also recommended: stochastic oscillator indicator for metatrader 5 - similar indicator with strong performance on MetaTrader 5.

It utilizes a signal line for identifying potential changes in trend direction.

Buy Signal: A buy signal is generated when the oscillator's main line crosses above the signal line.

Sell Signal: A sell signal is indicated when the oscillator's main line crosses below the signal line.

The signal line is calculated by smoothing the base line (Ergodic, also known as True Strength Index). The averaging period for the signal line is set equal to the last averaging period of the base line.

Trend Identification:
- An upward trend is indicated when the base line is above the signal line.
- A downward trend is indicated when the base line is below the signal line.

Installation:
The 'williamblau.mqh' file should be placed in the following directory:
terminal_data_folder\mql5\include\

The 'blau_ergodic.mq5' file should be placed in the following directory:
terminal_data_folder\mql5\indicators\

Calculation:
The Ergodic Oscillator is calculated using the following formula:

Ergodic Oscillator = Ergodic() - SignalLine()

Where:
- Ergodic() represents the base line, calculated as the True Strength Index (TSI) with parameters (price, q, r, s, u).
- SignalLine() represents the signal line, calculated by applying a smoothing period (ul) to the Ergodic() base line.
- ul is the averaging period for the signal line. According to William Blau's methodology, this period should be equal to the last averaging period (>1) of the Ergodic line. For instance, if Ergodic(price, q, r, s, u) is calculated with s=5, then ul=5.

Input Parameters:

For Graphic Plot #0 - Ergodic (True Strength Index):
- q: Momentum averaging period (default: 2).
- r: Period for the 1st EMA applied to momentum (default: 20).
- s: Period for the 2nd EMA applied to the result of the first smoothing (default: 5).
- u: Period for the 3rd EMA applied to the result of the second smoothing (default: 3).

For Graphic Plot #1 - Signal Line:
- ul: Smoothing period of the signal line, applied to the base line (default: 3).
- appliedPrice: The price to be used for calculations (default: price_close).

Notes:
- q must be greater than 0.
- r, s, and u must be greater than 0. If r, s, or u is set to 1, smoothing is not applied.
- ul must be greater than 0. If ul is set to 1, the signal line and base line will be identical.
- The minimum number of rates required for calculation is (q - 1 + r + s + u + ul - 4 + 1).

You may also like: channel and stochastic oscillator - excellent alternative for indicator users on MetaTrader 5.

#property copyright "robotfx"
#property link "https://robotfx.org"
#property description "this code is educational. feel free to use, modify and upgrade as you wish. visit robotfx.org for professional trading tools"
#include <williamblau.mqh>                 // include file (terminal_data_folder\mql5\include)
#property indicator_separate_window        // indicator in a separate window
#property indicator_buffers 11             // number of buffers
#property indicator_plots   2              // indicator plots
#property indicator_level1 -25             // level #0
#property indicator_level2 25              // level #1
#property indicator_levelcolor silver      // level color

.......

• This tool is provided for educational and testing purposes only.
• Past performance does not guarantee future results.
• Trading involves substantial risk of loss. Use on a demo account first.
• Results may vary depending on market conditions, broker, and settings.
• We recommend thorough backtesting and forward testing before using with real funds.