TSI Technical Analysis & TSI Signals

TSI Trading Indicator

Created by William Blau

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

TSI is drawn as a blue line, the indicator also plots a signal line which is drawn as a red-line, and these 2 lines are used to generate cross over signals.

TSI also plots a histo-gram which shows difference between the TSI Line & the Signal-line. This histogram crosses above or below the center-line, histo-gram levels above the center-line shows bullish crossover signal, while center line levels below the center-line shows a bearish cross over signal.

Gold Analysis and Generating Signals

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

Zero line Gold Cross Over (Histogram crossover not Lines XAUUSD Trading crossover )

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

Trading Signal line Crossover

• A buy is generated when TSI line crosses above the Signal Line
• A sell is generated when 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 cross-overs happen.

Divergence XAUUSD

Divergence is used to look for potential xauusd trend reversal point of a xauusd. Reversal divergence set-ups are:

Classic Divergence

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

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

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

Hidden XAUUSD Trading Divergence Setup

XAUUSD Hidden Bullish Divergence: higher lows in price & lower lows on the technical indicator

XAUUSD Hidden Bearish Divergence: lower highs in price & higher highs on the technical indicator

Over-sold/Overbought Levels on Indicator

This can be used to identify overbought and oversold conditions in price action movements.

• Over-bought 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 signal is generated.

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

Oversold

Over-bought

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

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