What is the SMI Ergodic Oscillator Indicator for MT4?

The SMI Ergodic Oscillator indicator is a technical tool used to measure the strength of trends in a currency’s price. It measures the difference between the average daily price and the daily volatility index (a measurement of how much a currency’s price moves up and down). The indicator shows whether prices are trending upward or downward and, therefore, whether they are likely to continue in that direction or could shift. It is often used with other technical indicators to help make trading decisions.

SMI Ergodic Oscillator Indicator

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How to use the SMI Ergodic Oscillator Indicator for MT4?

One of the most common uses of this indicator is to identify if a particular market trend is likely to continue. If the slope of the line between the two moving averages is steep, it indicates that there may be intense buying pressure in the market, which could lead to an upward trend. On the other hand, if the slope is flat or negative, there may be weak selling pressure in the market, which could lead to a downward trend.

SMI Ergodic Oscillator Indicator MT4 trading settings

Forex SMI Ergodic Oscillator settings can be adjusted to suit individual trading strategies. For example, standard locations might include using longer timeframes (such as 14 or 30-day EMA) for identifying sustained upward or downward price momentum. In comparison, shorter timeframes (such as 3-day EMA) are used for shorter-term trends.

The SMI is a valuable tool for identifying short-term trends in the market and can help predict future price movements. However, it should not be considered an absolute indicator of future direction and should be used alongside other indicators and risk management techniques.

SMI Ergodic Oscillator Indicator Advantages

Advantages: The SMI is an effective tool for analyzing price trends and can determine whether a particular asset or currency trends are up or down. It is also helpful in identifying possible turning points in the market, as it gives traders an early warning sign before significant shifts in price direction occur. The SMI can be part of automated trading systems to help automate complex trading strategies. The SMI is a versatile and powerful tool for analyzing the market and making informed trading decisions.

SMI Ergodic Oscillator Indicator Disadvantages

One reason it can be challenging to interpret the SMI indicator is that it measures differences in value rather than absolute values. It is common for one currency to be stronger or weaker than another in the short term but eventually reverse and become stronger again. Any SMI reading may not always be a reliable signal of long-term trends in the underlying currency pair.

Another disadvantage of using the SMI indicator is that it can produce misleading signals when combined with other hands. For example, if a currency has been weakening for some time and then suddenly reverses course and strengthens, this could be incorrectly interpreted as a sign of impending reversal if high levels of the SMI indicator accompany it. This is because the SMI indicator does not consider factors such as momentum or volatility that may drive real-time price movements.

Indicator installation on MT4

To install the SMI Ergodic Oscillator Indicator on MT4, follow these steps:

  1. Download the SMI Ergodic Oscillator Indicator file (.ex4 or .mq4) to your computer.
  2. Open your MT4 platform and click “File” in the top left corner.
  3. Select “Open Data Folder” from the drop-down menu.
  4. In the window that appears, open the “MQL4” folder and the “Indicators” folder.
  5. Copy the SMI Ergodic Oscillator Indicator file you downloaded into this “Indicators” folder.
  6. Close the data folder window and return to your MT4 platform.
  7. From the “Navigator” window on the left-hand side of the platform, find the “Indicators” folder.
  8. Click on the triangle next to the “Indicators” folder to expand it.
  9. You should now see the SMI Ergodic Oscillator Indicator listed.
  10. Drag and drop the SMI Ergodic Oscillator Indicator onto the chart you want to use it with.
  11. A window will allow you to adjust the indicator settings to your liking.
  12. Once satisfied with the settings, click “OK” to apply the SMI Ergodic Oscillator Indicator to your chart.

You should now see the SMI Ergodic Oscillator Indicator displayed on your chart.

SMI Ergodic Oscillator Indicator mt4

SMI Ergodic Oscillator Indicator mt4 free download


The SMI indicator is a technical analysis tool that measures the strength of price movements over time. It uses two hands to calculate its score – the Simple Moving Average (SMA) and the Eroded Percent Index (EPI). The SMI indicator can identify periods of strong or weak price movement and may help you make informed investment decisions.

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Telegram Channel | Quora | Reddit

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