True Strength Index (TSI) is a momentum oscillator with a range between -100 and +100 and a base value of 0.
When an oscillator is positive, momentum is positive (indicating a bullish bias in the market).
When the oscillator is negative, momentum is negative (indicating a bearish bias in the market).
It was developed by William Blau and consists of 2 lines:
- iIndex line
- TSI is called the Signal Line
The exponential moving average of
Traders may be looking for any of the following five conditions:
- Center line crossing
- The signal lines are crossed.
TSI can be used to identify overbought and oversold conditions, indicate potential changes in trend direction via centerline or signal line crossovers, and warn of trend weakness via divergences.
This indicator light is often used in combination with other signals.