TSI Divergence Indicator Download for MetaTrader5 - Free - [TF Lab] - MT4/MT5 Resources

On June 23, 2025, in version 2, the indicator added alert/notification functionality

The TSI Divergence indicator is one of the MetaTrader 5 oscillators that detects divergences at peaks and troughs without the need for manual chart inspection.

This oscillator consists of a curve that determines the bullish divergence with the blue line when it is below the zero line and displays the signal on the buy chart. Conversely, when the curve is above the zero line, it detects bearish divergence from the pink line and shows a sell signal on the chart.

This automated approach can help traders identify potential trend reversals more efficiently.

Indicator Table

In the image below, the price chart gold with the symbol [XAUUSD] displays information on the 5-minute time frame. Initially, there is a downtrend on the left side of the chart, and at its end, a bullish (positive) divergence occurs, indicating weakening of the downtrend .

This indicator marks a buy signal on the price chart. On the right side of the image, at the uptrend , when a bearish (negative) divergence occurs, the indicator pink lines and a sell signal appears on the chart. Additional tools can be used to obtain reliable signals from indicators, support and resistance levels .

Overview

The TSI (True Strength Index) oscillator is an important tool for detecting divergences on price charts. This MT4 signals and prediction indicator identifies potential trend reversals by identifying divergences to pinpoint key points without the need for manual chart analysis and time-consuming review.

Furthermore, for better convenience for traders, it marks relevant points with buy and sell signals directly on the price chart. This feature enhances its utility for timely decision-making in trading scenarios.

Uptrend Signal (Buy Signal)

In the image below, the price chart of Lite coin with the symbol (LITECOIN) is shown on a 15-minute time frame. At the end of a downtrend , the indicator indicates positive divergence (RD+) between two lows .

The curve is blue and is below the zero level, marking a potential reversal downtrend and issuing a buy signal . Traders may consider entering a buy trade, especially when other factors are confirmed, such as support levels.

Downtrend signal (sell signal)

In the image below, a chart of the currency pair Canadian Dollar/Swiss Franc with the symbol (CADCHF) is shown on a 4-hour time frame.

At the end of an uptrend, the price between the two highs of Negative Divergence (RD-) is indicated by the indicator.

The curve is orange and lies above the zero level. This situation indicates a potential reversal of the uptrend and issues a sell signal. T

Players may consider entering a sell trade, especially when the signal is confirmed by other trading indicators, such as resistance levels .

TSI Divergence Indicator Settings

• True Strength Index Momentum Smoothing Period : Use the 25-period moving average to smooth the True Strength Index;
• True Strength Index Smoothing Period 2 : Additional smoothing using a 13-period moving average;
• Price : Calculation based on closing price;
• Number of candles used for pivot calculation : Set the number of candles used for pivot calculation to 8;
• Maximum distance between two pivots : The maximum distance between two pivots is 30;
• Minimum distance between two pivots : The minimum distance between two pivots is 5;
• Number of divergences from the pivot : one divergence is calculated for each pivot;
• Number of TSIs that break the boundary : TSI line breaks are identified as number 2;
• Shift : Shift is set to 2;
• Sell ​​Divergence : The color of the sell divergence signal is pink or any other color of your choice;
• Buy Divergence : The color of the buy divergence signal is blue or any other color of your choice;
• Width : The width is set to 2.

Conclusion

Like other divergence detection tools, the TSI oscillator is useful for quickly predicting trend direction. This trading tool can be used on all time frames and in various financial markets.

Nonetheless, it is recommended to avoid using it on shorter time frames and scalping styles for better performance.

Additionally, it can be used in conjunction with various analysis tools as well as TSI divergence to enhance analysis. This integration helps confirm signals and make more informed trading decisions.