True Strength Index: double-smoothed price momentum (25 and 13 EMAs) with a 13-bar signal line.
Overview
The True Strength Index (TSI) shows momentum as a smooth line in its own pane, with a signal line in orange.
Colors are green while TSI is above its signal and red while below.
How it works
Take the one-bar change of the close. Smooth it with a 25-bar EMA, then a 13-bar EMA. Do the same with the absolute change. TSI = 100 x smoothed change / smoothed absolute change.
Signal = 13-bar EMA of TSI. Using the absolute change in the second part keeps the result on a fixed scale.
How to use it
- Some traders watch TSI crossing its signal line.
- Use zero-line crosses as changes in momentum direction.
- Look for divergence with price.
- Use high and low readings as signs of stretched momentum for that symbol.
These are ways some traders read it, for learning. They are not trade signals.
Settings
| Setting | Default |
|---|---|
| Settings | |
| Long LengthLength of the first (long) EMA applied to the 1-bar price change. | 25 |
| Short LengthLength of the second (short) EMA applied to the long-smoothed price change. | 13 |
| Signal LengthLength of the EMA of TSI used as the signal line. | 13 |
| Style | |
| TSIColor of the TSI line. | #787b86 |
| SignalColor of the signal line. | #ff9800 |
| BullishColor of the TSI line and its gradient fill while TSI holds above zero. | #089981 |
| BearishColor of the TSI line and its gradient fill while TSI holds below zero. | #f23645 |
Alerts
You can alert on its line crossing a value or the candle close (from the chart's + menu); checked while ZoroCharts is open.
Notes and limits
- Works on any symbol and timeframe; it only needs candle data.
- Values usually stay between -100 and +100.
- It is closely related to the SMI Ergodic Oscillator.
Education only. Not financial advice. Indicators mark what happened on the chart; they do not predict what price will do. Trading futures, forex, crypto and other markets carries a high level of risk and may not be suitable for everyone.