How Do You Use True Strength Index TSI MetaTrader 4 Technical Indicator?
True Strength Index (TSI) Indicator Technical Analysis Buy & Sell 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 forex price changes, making it a leading indicator that follows forex price action direction closely in the forex 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.
How to Add MetaTrader 4 True Strength Index TSI Indicator on MetaTrader 4 Charts
How to Generate Buy and Sell Signals
TTSI indicator uses various forex technical analysis methods to generate forex signals. TSI indicator can be analyzed in the same way as the RSI indicator to determine general forex trend direction. Overbought and oversold levels can also be shown interpreted the TSI indicator. The most common forex technical analysis methods of generating TSI indicator trading signals are:
Zero line Forex Crossover ( Histogram Forex crossover not Lines FX Trading crossover)
- Buy Forex Trading Signal - a forex buy trading signal is generated when the TSI indicator histogram crosses above 0 center line mark
- Sell Forex Trading Signal - a forex sell trading signal is generated when the TSI indicator histogram crosses below 0 center line mark
Analysis of MetaTrader 4 Indicator True Strength Index TSI Trading Indicator
FX Signal Line Forex Trading Crossover
- A forex buy trading signal is generated when the TSI indicator line crosses above the Signal line
- A forex sell trading signal is generated when the TSI indicator line crosses below the Signal line
This forex trading signal is the same as the forex trading signal described above and the timing corresponds to the time when the TSI indicator histogram crossovers happen.
Divergence Forex
Divergence forex trading is used to look for potential forex trend reversal areas. The forex reversal divergence forex trading setups are:
Classic FX Divergence Trading
Classic Bullish Divergence: Lower lows in the forex price and higher lows on the TSI indicator
Classic Bearish Divergence: Higher highs on the forex price and lower highs on the TSI indicator
Divergence forex trading signals can also be used in identifying potential forex trend continuation areas in forex price direction. The continuation divergence forex trading setups are:
Hidden Forex Divergence Trading
Hidden Bullish Divergence: higher lows on the forex price and lower lows on the TSI indicator
Hidden Bearish Divergence: lower highs on the forex price and higher highs on the TSI indicator
Overbought and Oversold Levels on Indicator
Overbought and oversold levels can be used to identify the overbought and over-sold conditions in forex price movement.
- Overbought Levels - TSI indicator values greater than the +25 level
- Oversold Levels - TSI indicator values less than the -25 level
Forex trades can be generated when the TSI indicator crosses these overbought oversold levels.
Buy forex trading signal - a forex buy trading signal is generated when the TSI indicator crosses above -25 level.
Sell forex trading signal - a forex sell trading signal is generated when the TSI indicator crosses below +25 level.
Oversold Levels
Overbought Levels
The overbought and oversold levels are displayed using horizontal lines drawn at the +25 and -25 forex indicator levels.
How to Add MetaTrader 4 True Strength Index TSI Indicator on MetaTrader 4 Charts
Step 1: Open MetaTrader 4 Platform Navigator Panel
Open MT4 Navigator window as shown below: Go to "View" menu (click), then select "Navigator" window (click), or From Standard Tool Bar click the "Navigator" button or press keyboard MetaTrader 4 shortcut keys "Ctrl+N"
On MT4 Navigator window, select "Indicators", by Double Clicking
How Do You Use MetaTrader 4 True Strength Index TSI Technical Indicator?
How to Add True Strength Index TSI MetaTrader 4 Indicator
Expand the menu by clicking the expand button (+) or double click the "indicators" menu, after this the button will appear as (-) and it will then display a list of MetaTrader 4 indicators as shown below - choose the True Strength Index TSI technical indicator from this list of MetaTrader 4 indicators so that you can add the True Strength Index TSI MetaTrader 4 indicator on the MetaTrader 4 forex chart.
How Do You Use MetaTrader 4 True Strength Index TSI Technical Indicator?
How Install and Add Custom True Strength Index TSI Indicator on MetaTrader 4?
If the MetaTrader 4 indicator that you want to add on the MetaTrader 4 charts is a custom MT4 indicator - for example if the True Strength Index TSI indicator that you want to add is a custom MetaTrader 4 indicator you will need to first add this custom True Strength Index TSI MetaTrader 4 indicator on the MetaTrader 4 platform and then compile this custom True Strength Index TSI technical indicator so that this newly added True Strength Index TSI MetaTrader 4 forex custom indicator appears on the custom technical indicators list on the MetaTrader 4 software.
To learn how to add True Strength Index TSI indicators on MT4 platform - how do you add True Strength Index TSI indicator window to MT4 platform? - how do you add True Strength Index TSI forex custom indicator on MT4 platform? - How to add a custom True Strength Index TSI custom forex indicator on MetaTrader 4.
How Do You Use MetaTrader 4 True Strength Index TSI Technical Indicator?
