OPEN-SOURCE SCRIPT
Technical Strength Index (TSI)
📘 TSI with Dynamic Bands – Technical Strength Index
The TSI with Dynamic Bands is a multi-factor indicator designed to measure the statistical strength and structure of a trend. It combines several quantitative metrics into a single, normalized score between 0 and 1, allowing traders to assess the technical quality of market moves and detect overbought/oversold conditions with adaptive precision.
🧠 Core Components
This indicator draws from the StatMetrics library, blending:
📈 Trend Persistence: via the Hurst exponent, indicating whether price action is mean-reverting or trending.
📉 Risk-Adjusted Volatility: via the inverted [Coefficient of Variation (CV)], rewarding smoother, less erratic price movement.
🚀 Momentum Strength: using a combination of directional momentum and Z-score–normalized returns.
These components are normalized and averaged into the TSI line.
🎯 Features
TSI Line: Composite score of trend quality (0 = weak/noise, 1 = strong/structured).
Dynamic Bands: Mean ± 1 standard deviation envelopes provide adaptive context.
Overbought/Oversold Detection: Based on a rolling quantile (e.g. 90th/10th percentile of TSI history).
Signal Strength Bar (optional): Measures how statistically extreme the current TSI value is, helping validate confidence in trade setups.
Dynamic Color Cues: Background and bar gradients help visually identify statistically significant zones.
📈 How to Use
Look for overbought (red background) or oversold (green background) conditions as potential reversal zones.
Confirm trend strength with the optional signal strength bar — stronger values suggest higher signal confidence.
Use the TSI line and context bands to filter out noisy ranges and focus on structured price moves.
⚙️ Inputs
Lookback Period: Controls the smoothing and window size for statistical calculations.
Overbought/Oversold Quantiles: Adjust the thresholds for signal zones.
Plot Signal Strength: Enable or disable the signal confidence bar.
Overlay Signal Strength: Show signal strength in the same panel (compact) or not (cleaner TSI-only view).
🛠 Example Use Cases
Mean reversion traders identifying reversal zones with statistical backing
Momentum/Trend traders confirming structure before entries
Quantitative dashboards or multi-asset screening tools
⚠️ Disclaimer
This script is for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any financial instrument.
This AI is not a financial advisor; please consult your financial advisor for personalized advice.
The TSI with Dynamic Bands is a multi-factor indicator designed to measure the statistical strength and structure of a trend. It combines several quantitative metrics into a single, normalized score between 0 and 1, allowing traders to assess the technical quality of market moves and detect overbought/oversold conditions with adaptive precision.
🧠 Core Components
This indicator draws from the StatMetrics library, blending:
📈 Trend Persistence: via the Hurst exponent, indicating whether price action is mean-reverting or trending.
📉 Risk-Adjusted Volatility: via the inverted [Coefficient of Variation (CV)], rewarding smoother, less erratic price movement.
🚀 Momentum Strength: using a combination of directional momentum and Z-score–normalized returns.
These components are normalized and averaged into the TSI line.
🎯 Features
TSI Line: Composite score of trend quality (0 = weak/noise, 1 = strong/structured).
Dynamic Bands: Mean ± 1 standard deviation envelopes provide adaptive context.
Overbought/Oversold Detection: Based on a rolling quantile (e.g. 90th/10th percentile of TSI history).
Signal Strength Bar (optional): Measures how statistically extreme the current TSI value is, helping validate confidence in trade setups.
Dynamic Color Cues: Background and bar gradients help visually identify statistically significant zones.
📈 How to Use
Look for overbought (red background) or oversold (green background) conditions as potential reversal zones.
Confirm trend strength with the optional signal strength bar — stronger values suggest higher signal confidence.
Use the TSI line and context bands to filter out noisy ranges and focus on structured price moves.
⚙️ Inputs
Lookback Period: Controls the smoothing and window size for statistical calculations.
Overbought/Oversold Quantiles: Adjust the thresholds for signal zones.
Plot Signal Strength: Enable or disable the signal confidence bar.
Overlay Signal Strength: Show signal strength in the same panel (compact) or not (cleaner TSI-only view).
🛠 Example Use Cases
Mean reversion traders identifying reversal zones with statistical backing
Momentum/Trend traders confirming structure before entries
Quantitative dashboards or multi-asset screening tools
⚠️ Disclaimer
This script is for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any financial instrument.
This AI is not a financial advisor; please consult your financial advisor for personalized advice.
开源脚本
本着TradingView的真正精神，此脚本的创建者将其开源，以便交易者可以查看和验证其功能。向作者致敬！虽然您可以免费使用它，但请记住，重新发布代码必须遵守我们的网站规则。
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。