http://www.elitetrader.com/vb/showt...ghlight=simple profitable method&pagenumber=1 Thats one way to use the MACD. I use a variant of it on range charts. imho, ymmv and fwiw
Your oversimplification misses on a couple of points. For starters, no where is Blau's book does he ever mention, much less create, a histogram ala the MACD histogram. Second, he explicitly defines the (not "an") ergodic oscillator on pg. 18: Ergodic Oscillator ...we shall employ a similar oscillator based on the True Strength Index called the Ergodic Oscillator, or simply, the Ergodic. The oscillator consists of two parts: the Ergodic and its Signal Line given by: Ergodic(Close, r) = TSI(Close, r, 5) Signal Line(Close, r) = EMA(TSI(Close, r, 5), 5) Any other use in his book includes the root indicator in its name, like Ergodic_TVI or Ergodic_CSI for example. You also overlooked the fact that his use of "ergodic" refers to a fixed second smoothing value of 5 for whichever indicator he's basing it on as well as a fixed 5 period EMA for it's associated signal line.
The very fact that he created the Ergodic_CSI and the Ergodic _TVI should have been a big fat clue to you that the name "Ergodic" is not unique to the TSI. The fact that his book is poorly edited to reflect this fact should also be obvious. And when you make an Ergodic Oscillator, this creates what is typically referred to as a "histogram". Whether this term makes sense or whether or not Blau specifically referred to it is irrelevant. TA has a long history of terms that make no sense in the conventional way: Lane's "Stochastics", the "Relative" Strength Index (not to be confused with actual relative strength), Blau's "Ergodic" whatever, etc.