TSI Indicator

Overview

The True Strength Index (TSI) indicator is a momentum oscillator plotted in a separate window on MT4. It smooths the momentum (MTM) and its absolute value through two successive Exponential Moving Averages (EMAs) and then computes their ratio multiplied by 100. TSI helps visualize trend strength and potential turning points in the market.

Key Features

• Dual-EMA smoothing to reduce noise and produce a clean line
• Signal EMA overlay to assist with entry and exit timing
• Auto-scaled range from –100 to +100
• Horizontal level lines at 0 and ±50 for clearer visual reference
• Configurable periods for Fast EMA, Slow EMA, and Signal EMA

Installation

1. In MT4, select “File” → “Open Data Folder.”
2. Copy TSI.mq4 into the MQL4\Indicators folder.
3. Restart MT4 or right‑click “Navigator” and choose “Refresh.”
4. On your chart, go to “Insert” → “Custom” → “TSI,” adjust parameters, and click “OK.”

Parameters

Calculation Logic

1. Compute momentum (MTM):
   MTM[i] = Close[i] – Close[i+1]
2. Compute absolute momentum:
   ABSMTM[i] = MathAbs(MTM[i])
3. First EMA (fast) with SMA seed, then recursive:
   EMA1[i] = EMA1[i+1] + k1 × (MTM[i] – EMA1[i+1])
4. Second EMA (slow) on EMA1:
   EMA2[i] = EMA2[i+1] + k2 × (EMA1[i] – EMA2[i+1])
5. True Strength Index:
   TSI[i] = 100 × EMA2_MTM[i] / EMA2_ABSMTM[i]
6. Signal EMA with SMA seed, then recursive:
   Signal[i] = Signal[i+1] + ksig × (TSI[i] – Signal[i+1])

How to Use

• TSI crossing above 0 supports buy signals.
• TSI crossing below 0 supports sell signals.
• Values beyond ±50 indicate strong trend or overbought/oversold conditions.
• Golden/death crosses between TSI and its signal EMA can refine entry/exit points.
• Combine across multiple timeframes to gauge long‑term trend and short‑term momentum.

Recommended Settings

• Scalping: FastEMAPeriod=5, SlowEMAPeriod=13, SignalEMAPeriod=5
• Day Trading: FastEMAPeriod=7, SlowEMAPeriod=14, SignalEMAPeriod=7
• Swing Trading: FastEMAPeriod=14, SlowEMAPeriod=28, SignalEMAPeriod=14

Notes and Warnings

• Minor discrepancies may occur between backtesting and live ticks due to data feed variations.
• On very low timeframes, consider increasing FastEMAPeriod or using additional filters to reduce noise.
• Past performance does not guarantee future results. Always test thoroughly on a demo account before trading live.

This indicator is one of the high‑quality custom tools provided by TOKYO‑EA for traders of all levels.