Real Strength Index Trading - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources

The True Strength Index ( TSI ) is a technical indicator used in financial market analysis that attempts to indicate trend direction and overbought/oversold conditions. This was the first one published in 1991 by William Blau. This indicator uses a moving average of a financial instrument's underlying momentum. Momentum is considered the influence of price changes in leading indicators, while moving averages have lagging prices. The TSI combines these characteristics to create an indicator of price and direction that is more in sync with market turns than either momentum or moving averages.

The formula for TSI is:

c 0 = today’s closing price

m = c 0 − c 1 = Momentum (the difference between today’s closing price and yesterday’s closing price)

EMA ( m , n ) = exponential moving average m over n periods

r = EMA smoothing period of momentum, usually 25

s = EMA smoothing period of smoothed momentum, usually 13

This version uses what William Blau did for almost all of his indicators - the "trading" version. The idea of ​​the "trading" version is to check the main value for the zero crossing and then use the directional change in slope in the same direction as the entry or re-entry signal.

You can use it for signals when the value is different from 0 - the direction of the entry depends on the direction of the momentum.

Attachment download

📎 blau_-_tsi_trade.mq5 (9.38 KB)

Source: MQL5 #22738