VT Trader™ 2.0 Logo
Key Features and Benefits of VT Trader™

True Strength Index (TSI)

www.cmsfx.comThe True Strength Index (TSI) is a variation of the Relative Strength indicator developed by William Blau. It is a momentum-based indicator that combines the leading characteristic of a differencing momentum calculation with the lagging characteristic of an averaging function to create an indicator that reflects price direction and is more in sync with market turns.

Interpretation

The TSI can be used to determine general trend direction as well as overbought-oversold conditions. A signal line is often added to the TSI to help identify reversals. The overbought/oversold levels of +/- 25 can be used in much the same way as the 30/70 levels of the Relative Strength Index.

The materials presented on this website are solely for informational purposes and are not intended as investment or trading advice. Suggested reading materials are created by outside parties and do not necessarily reflect the opinions or representations of Capital Market Services LLC. Please refer to our risk disclosure page for more information.