The SMI Ergodic works similarly to the True Strength Index (TSI) indicator, but with added benefits such as a signal line and double smoothening. The TSI indicator is one of the most accurate oscillator indicators, which means the SMI Ergodic is equally accurate.
It is one of the few indicators that traders can use in isolation without worrying about accuracy because it’s complete – it utilizes the EMA to derive recent price data and smoothens it to increase the accuracy of the signals.