SMI Ergodic Indicator (SMIEO) – FX Replay Guide

The SMIEO in FX Replay is a momentum and trend-following tool that combines the True Strength Index (TSI), a signal line (EMA), and a histogram (SMIO) to help you spot reversals, confirm entries, and gauge market strength.

How to Add It in FX Replay

• Open the Indicators panel
• Search for “SMI Ergodic” or “SMIEO”
• Add it to your chart to view the SMI line, signal line, and histogram below the price

How to Use It in Backtesting or Strategy Building

Crossovers for Entries/Exits

• Buy Signal: SMI line crosses above the signal line → suggests upward momentum and potential long entry
• Sell Signal: SMI line crosses below the signal line → suggests downside momentum and possible exit or short setup

Histogram Momentum (SMIO)

• Watch for increasing histogram bars as confirmation of strengthening trend
• Shrinking bars can signal momentum loss or a possible reversal

Divergence Detection

• Example: Price makes higher highs while SMIEO makes lower highs → potential bearish divergence
• Use divergence as a caution flag or entry filter when backtesting

Zero Line as Bias Filter

• SMI above 0 = bullish zone
• SMI below 0 = bearish zone
• Use the 0 line to define directional bias in your FX Replay strategy logic

Tuning the Settings

• Adjust the smoothing periods to match your style
  • Shorter = more reactive (good for scalping)
  • Longer = smoother, ideal for swing setups
• Backtest different configurations to optimize for your asset or timeframe

Pro Tip

In FX Replay, use SMIEO as a trend confirmation or reversal warning tool, especially when paired with:

• Price structure (e.g., HH/HL or LH/LL)
• Volume-based confirmation
• Other indicators like RSI, MACD, or PO3°

The histogram is especially useful for visually spotting trend strength or weakness during key trade setups.