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True Strength Index Bitcoin Analysis & TSI Signals

TSI Indicator

Created by William Blau

True Strength Index is a tool that measures momentum. The TSI is created using a momentum formula that responds more quickly and is more sensitive to changes in bitcoin's price: this makes it a leading tool that closely tracks the direction of bitcoin's price in the bitcoin market.

The TSI appears as a blue line. A red signal line crosses it to create buy or sell alerts.

The TSI also generates a histogram that depicts the difference between the TSI Line and the Signal Line. This histogram fluctuates above or below the centerline: levels above the centerline indicate a bullish crossover signal, while levels below the centerline signify a bearish crossover signal.

True Strength Index Technical Bitcoin Indicator - TSI BTCUSD Trading Indicator - Crypto MT4 Indicator TSI BTCUSD Indicator

BTCUSD Analysis & Generating Signals

The TSI employs a variety of techniques and methods to produce cryptocurrency signals. This indicator can be utilized similarly to the RSI to determine the overall trend direction of Bitcoin prices. Additionally, TSI can illustrate overbought and oversold levels. The most common methods for generating trading signals include:

Zero line Cross-over ( Histogram BTCUSD Trading crossover not Lines crossover)

  • Buy - when the histogram crosses above 0 a buy is generated
  • Sell - when the histogram crosses below Zero a sell signal is generated

True Strength Index Technical Bitcoin Indicator - TSI Indicator

Bitcoin Signal line BTCUSD Trading Crossover

  • A buy is generated when the TSI line crosses above Signal-line
  • A sell is generated/derived when the TSI line crosses below Signal Line

This signal is the same as the one above, and it happens at the same time as when the histogram crosses over.

Divergence Bitcoin CryptoCurrency Trading

The divergence setup is utilized to identify potential reversal points in the bitcoin trend. Reversal divergence setups include:

Classic BTCUSD Trading Divergence

Bitcoin Trade Classic Bullish Divergence Trading Setup: Lower lows in bitcoin price & higher lows on the indicator

Bitcoin Trade Classic Bearish Divergence Setup: Higher highs in bitcoin price & lower highs in the trading indicator

Divergence in trading analysis can also be instrumental in pinpointing potential stages where a bitcoin trend might continue along its existing direction in bitcoin price action. Continuation divergence scenarios include:

Hidden Bitcoin Divergence Trade Setup

Bitcoin Hidden Bullish Divergence: higher lows in bitcoin price and lower lows on the indicator

Bitcoin Hidden Bearish Divergence: lower highs in bitcoin price and higher highs in the indicator

Overbought/Over-sold Levels on Indicator

this may be used to pick out overbought & oversold situations in bitcoin fee movement moves.

  • Overbought condition - levels being higher than the +25 level
  • Over-sold condition - levels being lesser than the -25 level

Trades can be generated/derived when TSI crosses these technical levels.

Buy signal - when the levels cross above -25 level a buy signal is generated.

Sell trading signal - a sell signal is generated when the areas cross below the +25 level.

TSI BTCUSD Indicator - Crypto MT4 Indicator TSI BTCUSD Indicator

Over-sold

Crypto MT4 Indicator TSI BTCUSD Indicator - True Strength Index (TSI) Trading Strategies That Works

Overbought

The overbought/oversold levels are indicated the use of horizontal traces drawn on the +25 & -25 tiers.

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