Adaptive Ergodic CCI

This is an adaptive ergodic cci using an Efficiency Ratio EMA.

What is the Ergodic indicator?

In the realm of trading, the Ergodic Oscillator, formally known as the SMI Ergodic Oscillator, serves as a momentum oscillator designed to assess the strength of market trends and detect possible trend reversals. Developed by William Blau, the Ergodic oscillator integrates the Signal Line (Ergodic) with the True Strength Index (TSI) to deliver an in-depth perspective on market momentum.

An unconventional, yet useful approach to using the Ergodic indicator involves employing it as a qualifier (signal line) for the CCI. When the Ergodic indicator is overlaid on the CCI as a signal line, it effectively validates the extreme trades indicated by the CCI.

For additional reading and indicator(s), please take a look at this post, here: Ergodic CCI.