3 Seas - TSI Ergodic Waves
This is my own original approach at a True Strength Index, it uniquely filters out all inputs to remove the noise normally found in a more traditional TSI Oscillator.
My goal was to make my take on the TSI as similar to the original TSI as possible, while simply solving for its biggest weakness. A TSI is extremely noisy and overly reactive as is well documented in the finance industry which is why most now use RSI or MACD, What I did was apply a few conditional equations that when placed together form a filter that quells the re-activeness in the data that normally leads to the noise and this transfers across different time frames.
What Is the True Strength Index (TSI)?
The true strength index (TSI) is a momentum oscillator used to identify trends and reversals. The indicator may be useful for determining overbought and oversold conditions, indicating potential trend direction changes via centerline or signal line crossovers, and warning of trend weakness through divergences.
The TSI fluctuates between positive and negative territory. Positive territory means the bulls are more in control of the asset. Negative territory means the bears are more in control.
When the indicator divergences with price, the TSI may be signaling the price trend is weakening and may reverse.
A signal line can be applied to the TSI indicator. When the TSI crosses above the signal line it can be used as a buy signal, and when it crosses below, a sell signal. Such crossovers occur frequently, so use with caution.
Overbought and oversold levels will vary by the asset being traded.
The default settings are optimized for 20m, 3H, and 12H timeframes by default for BTC . Find your own settings for whatever security to gain your edge!
For any additional educational material please search for tutorials on TSI's, they will translate very well into this application but without the noisiness normally found within those same tutorial.
Additionally this indicator provides a dead band which allows users to pre-define what they wish to see as their cut-off for their entry and exit signal when trading.
In-depth tooltips have been included for additional help.
My goal was to make my take on the TSI as similar to the original TSI as possible, while simply solving for its biggest weakness. A TSI is extremely noisy and overly reactive as is well documented in the finance industry which is why most now use RSI or MACD, What I did was apply a few conditional equations that when placed together form a filter that quells the re-activeness in the data that normally leads to the noise and this transfers across different time frames.
What Is the True Strength Index (TSI)?
The true strength index (TSI) is a momentum oscillator used to identify trends and reversals. The indicator may be useful for determining overbought and oversold conditions, indicating potential trend direction changes via centerline or signal line crossovers, and warning of trend weakness through divergences.
The TSI fluctuates between positive and negative territory. Positive territory means the bulls are more in control of the asset. Negative territory means the bears are more in control.
When the indicator divergences with price, the TSI may be signaling the price trend is weakening and may reverse.
A signal line can be applied to the TSI indicator. When the TSI crosses above the signal line it can be used as a buy signal, and when it crosses below, a sell signal. Such crossovers occur frequently, so use with caution.
Overbought and oversold levels will vary by the asset being traded.
The default settings are optimized for 20m, 3H, and 12H timeframes by default for BTC . Find your own settings for whatever security to gain your edge!
For any additional educational material please search for tutorials on TSI's, they will translate very well into this application but without the noisiness normally found within those same tutorial.
Additionally this indicator provides a dead band which allows users to pre-define what they wish to see as their cut-off for their entry and exit signal when trading.
In-depth tooltips have been included for additional help.
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