The TSI_CCI indicator with the timeframe selection option available in input parameters.
Author: Nikolay Kositsin
Forum on trading, automated trading systems and testing trading strategies
newdigital, 2013.09.03 08:50
True Strength Index
Developed by William Blau
True Strength Index (TSI) indicator is a momentum
indicator. The TSI is plotted by using a momentum calculation that
reacts faster and is more responsive to price changes, making it a
leading indicator that follows price action direction closely in the
foreign exchange trading market.
The True Strength Index (TSI) indicator is plotted
as a blue line, the indicator also plots a signal line which is plotted
as a red line, and these two lines are used to generate crossover
TSI also plots a histogram which shows the difference between the TSI Line and the Signal line. This
histogram crosses above or below the centerlines, histogram levels
above the centerline shows a bullish crossover signal, while centerline
levels below the centerline shows a bearish crossover signal
The TSI uses various methods to generate Forex
trading signals. The TSI indicator can be used in the same way as the
RSI indicator to determine general trend direction of the Forex markets.
Overbought and oversold levels can also be shown using
this technical indicator. The most common methods of generating trading
This signal is the same as the one above and the timing corresponds to the time when the histogram crossovers happen.
Divergence trading is used to look for potential trend reversal point of a currency pair. The reversal divergence trading setups are:
Classic Divergence/Regular Divergence
Classic Bullish Divergence: Lower lows in price and higher lows on the TSI indicator
Classic Bearish Divergence: Higher highs in price and lower highs on the TSI indicator
Divergence trading can also be used in identifying potential trend continuation points in price action direction. The continuation divergence trading setups are:
Hidden Bullish Divergence: higher lows in price and lower lows in TSI indicator
Hidden Bearish Divergence: lower highs in price and higher highs in TSI indicator
Divergence Trading Setups
The TSI indicator can be used to identify overbought and oversold conditions in price action movements.
Trades can be generated when the TSI crosses these levels.
Buy signal- when the TSI indicator crosses above -25 level a buy signal is given.
Sell signal- when the TSI indicator crosses below +25 level a sell signal is given.