How to Add True Strength Index Indicator on MetaTrader 4 Charts - Adding MT4 TSI Indicator
Step 1: Open Navigator Window on Software
Open Navigator panel as shown & illustrated below: Go to 'View' menu (click on it), then select 'Navigator' window (click), or From Standard Tool Bar click 'Navigator' button or press keyboard shortcut keys 'Ctrl+N'
On Navigator window, select 'Indicators', (Double-Click)
How Do I Add True Strength Index TSI Indicator on MetaTrader 4 - MT4 True Strength Index TSI 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 forex chart indicator from this list of indicators so as to add the True Strength Index TSI indicator on the chart.
How Do You Add True Strength Index TSI Indicator - From the Above window you can then place True Strength Index TSI indicator that you want on the chart
How to Add Custom True Strength Index TSI Indicator to MetaTrader 4
If the indicator you want to add is a custom indicator - for example if the True Strength Index TSI 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 platform & then compile custom True Strength Index TSI indicator so that the newly added True Strength Index TSI custom indicator pops up on the list of custom indicators on MT4 software.
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 in MT4 - How to add a custom True Strength Index TSI indicator in MetaTrader 4.
About True Strength Index (TSI) Indicator Explained
True Strength Index (TSI) Analysis & TSI Signals
Developed by William Blau
TSI 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 market.
The TSI is plotted as a blue line, the indicator also plots a signal line which is plotted as a red line, & these two lines are used to generate crossover signals.
TSI also plots a histogram which shows the difference between the TSI Line & 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.
Forex Analysis & How to Generate Signals
The TSI uses various methods to generate signals. This indicator can be used in the same way as the RSI to determine general trend direction of currency markets. Overbought & oversold levels also can be shown using TSI. The most common methods of generating signals are:
Zero line Crossover (Histogram crossover not Lines Trading cross-over )
- Buy - when the histogram crosses above 0 a buy gets generated
- Sell - when the histogram crosses below 0 a sell is generated
Signal line Crossover
- A buy gets generated when TSI line crosses above Signal Line
- A sell is generated when TSI line crosses below Signal Line
This signal is the same as the one above & the timing corresponds to the time when the histogram crossover happen.
Divergence Trading
Divergence is used to look for potential trend reversal point of a forex pair. The reversal divergence setups are:
Classic FX Divergence Setup
Classic Bullish Divergence: Lower lows in price & higher lows on the indicator
Classic Bearish Divergence: Higher highs in price and lower highs on the indicator
Divergence trading also can be used in identifying potential trend continuation points in price action direction. The continuation divergence setups are:
Hidden 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 Indicator
This can be used to identify overbought and oversold 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 gets generated.
Sell signal - when the levels 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 & -25 levels.
