tsi

Dear
Members,

following is the indicator named TSI(True strength index)

_SECTION_BEGIN("TSI");
r = Param( "TSI period 'Length':", 25, 1, 100, 1 );
s = Param( "TSI period 'Smoothing':", 13, 1, 100, 1 );
sig = Param( "Signal period:", 7, 1, 100, 1 );

Mtm = C - Ref ( C, -1 );
AbsMtm = abs ( Mtm );
Num_T = EMA ( EMA ( Mtm, r ), s );
Den_T = EMA ( EMA ( AbsMtm, r ), s );

TSI = 100 * Nz ( Num_T / Den_T );
Plot( TSI, "TSI("+r+","+s+")", ParamColor( "Color", colorRed ), ParamStyle("Style") );
Plot(EMA(TSI,sig), "", colorLightBlue);
PlotGrid(0, colorLightGrey);
PlotGrid(25, colorLightGrey);
PlotGrid(-25, colorLightGrey);
_SECTION_END();

About the indicator

The TSI, from William Blau, is a variation of the Relative Strength Index. The TSI uses a doubly-smoothed exponential moving average of price momentum to eliminate choppy price changes and spot trend changes.

This indicator is designed to have very little or no time lag.When it is rising above zero, price is also rising. Also, when the indicator is falling below zero, price is also falling.
An increasing True Strength value indicates increasing momentum in the direction of price movement.


value +25 level is over bought zone and -25 over sold zone

method of trading

1. ZERO Crossover
2. Trend Line Break
3. Positive/Negative Divergence
4. Support/Resistance Line Break
5. Nosebleed/Opposite

afl is from www.wisestocktrader.com