Momentum

True Strength Index

TSI

Applies two successive EMAs to both price momentum and absolute momentum, then divides them. The double smoothing removes noise while the ratio normalizes the output to −100–+100. Zero-line crossings and signal-line crossovers are the primary signals.

Tips

TSI is slow to react due to double smoothing; it is best for identifying the direction of the primary trend rather than timing precise entries

TSI divergence from price at multi-month highs or lows is one of the more reliable early warnings of a major trend change

Parameters

Long Period

2 - 100

Short Period

2 - 100