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

The True Strength Index ( TSI ) is a technical indicator used in financial market analysis that attempts to show trend direction and overbought/oversold conditions. The book was first 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

There are already some versions of MT5, but they deviate from the original formula described by William Blau. So, this version is "literally" as the original version describes (also above)

You can use the color change of the TSI as a signal for momentum assessment, or you can use the zero line crossover as a signal of a long-term trend change

Attachment download

📎 blau_-_tsi.mq5 (8.46 KB)

Source: MQL5 #22737