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TSI XAUUSD Technical Analysis and TSI XAUUSD Signals

TSI XAUUSD Indicator

Developed by William Blau


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


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


TSI 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.

XAUUSD Trend Strength Indicator - TSI XAUUSD Indicator



XAUUSD Technical Analysis and Generating XAUUSD Signals

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


Zero line Crossover (Histogram crossover not Lines crossover)


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

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

XAUUSD Trend Strength Indicator - TSI XAUUSD Indicator



Signal line Crossover


  • A buy is generated when the TSI line crosses above the Signal line

  • A sell is generated when the TSI line crosses below the Signal line


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


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Divergence XAUUSD

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


Classic Divergence

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

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


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


Hidden Divergence

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

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



Oversold/Overbought Levels

This can be used to identify overbought and oversold conditions in gold 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 the TSI crosses these levels.

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

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

XAUUSD Trend Strength Indicator - TSI XAUUSD Indicator

Oversold


XAUUSD Trend Strength Gold Indicator - TSI XAUUSD Indicator

Overbought


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

 

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