How to Add True Strength Index Indicator in MT4 Charts - Adding MT4 TSI Indicator

Step 1: Open Navigator Window on CFDs Trading Software

Open Navigator panel as shown and illustrated below: Navigate to "View" menu (click on it), then select "Navigator" window (click), or From Standard Toolbar click the "Navigator" button or press key-board short-cut keys "Ctrl+N"

On Navigator window, select 'Technical Indicators', (Double-Click)

How to Add True Strength Index TSI Indicator in MT4 - MT4 True Strength Index TSI Technical Indicator

Step 2: Expand the Indicators Menu on the Navigator - Adding True Strength Index TSI MT4 Indicator

Expand the menu by clicking the expand button marker (+) or double click the "indicators" menu, after this the button will appear as (-) and will now display a list as shown below - select the True Strength Index TSI cfds chart indicator from this list of cfds indicators so as to add the True Strength Index TSI indicator on the cfd trading chart.

How to Add True Strength Index TSI Indicator - From the Above window you can then place True Strength Index TSI indicator that you want on the CFDs chart

How to Add Custom True Strength Index TSI Indicator to MT4

If the technical indicator you want to add is a custom indicator - for example if the True Strength Index TSI technical indicator you want to add is a custom indicator you will need to first add this custom True Strength Index TSI indicator on the MT4 software & then compile the custom True Strength Index TSI indicator so that the newly added True Strength Index TSI custom indicator appears on the list of custom indicators on the MT4 platform.

To learn how to install True Strength Index TSI indicators on MT4, how to add True Strength Index TSI indicator window to MT4 and how to add True Strength Index TSI custom indicator on MetaTrader 4 - How to add a custom True Strength Index TSI indicator in MT4.

About True Strength Index TSI Technical Indicator Explained

True Strength Index (TSI) Technical Analysis and TSI Trading Signals

Developed by William Blau

True Strength Index is a momentum indicator. The TSI is plotted by using a momentum calculation that reacts faster and is more responsive to price changes, making it a leading indicator that follows price action direction closely in the cfd market.

The True Strength Index is plotted as a blue line, the indicator also plots a signal line which is plotted as a red line, and these two lines are used to generate crossover signals.

True Strength Index also plots a histogram which shows the difference between the TSI Line and the Signal line. This histogram crosses above or below the center lines, histogram levels above the center line shows a bullish crossover signal, while center line levels below the center line shows a bearish crossover signal.

CFD Technical Analysis & Generating Trading Signals

The TSI uses various methods to generate trading signals. This indicator can be used in the same way as the RSI to determine general trend direction of the markets. Overbought and oversold levels can also be shown using TSI. The most common methods of generating trading signals are:

Zero line CFD Trading Crossover (Histogram CFDs Trading crossover not Lines CFD Trading crossover)

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

CFD Trading Signal line CFDs Trading Crossover

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

This signal is the same as the one above & the timing corresponds to the time when the histogram crossovers happen.

CFD Trading Divergence CFDs Trading

Divergence is used to look for potential trend reversal point of a cfds pair. The reversal divergence setups are:

Classic CFD Trading Divergence

Classic Bullish Divergence: Lower lows in price and higher lows on the indicator

Classic Bearish Divergence: Higher highs in price and lower highs on the indicator

Divergence trading can also be used in identifying potential trend continuation points in price action direction. The continuation divergence trading setups are:

Hidden CFDs Trading Divergence Setup

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

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

Overbought/Oversold Levels on Technical Indicator

This can be used to identify overbought & over-sold conditions in price action movements.

• Overbought condition - levels being greater than the +25 level
• Oversold condition - levels being less than the -25 level

Trades can be generated when TSI crosses these levels.

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

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

Oversold - Buy Signal

Overbought - Sell Signal

The overbought/oversold levels are indicated using horizontal lines plotted at the +25 and -25 levels.