How to Add True Strength Index Indicator on MetaTrader 4 Charts - Adding MT4 TSI Indicator

Step 1: Open the Navigator Panel on Trading Platform

Open Navigator panel as shown & illustrated below: Go to 'View' menu (click on it), then select 'Navigator' panel window (click), or From Standard Tool Bar click 'Navigator' button or press key-board short cut keys 'Ctrl+N'

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

How to Add True Strength Index TSI Indicator on MetaTrader 4 Charts

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 menu by clicking expand button marker (+) or doubleclick 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 that to add the True Strength Index TSI indicator on the chart.

How to Add 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 as a trader 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 panel 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 trading indicator. The TSI is plotted 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.

The TSI is drawn as a blue line, the trading indicator also draws a signalline which is plotted as a red line, & these two lines are used to generate cross-over signals.

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

How Do I Use True Strength Index TSI Indicator? - How to Add True Strength Index TSI Indicator on MetaTrader 4 Charts

Forex Analysis & How to Generate Signals

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

Zero line Crossover (Histogram crossover not Lines Trading cross-over )

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

True Strength Index (TSI) Indicator - How to Use True Strength Index TSI Indicator

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 technical indicator

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

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

Over-bought/Oversold Levels on Trading Indicator

This can be used to identify overbought and over-sold 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 TSI crosses these levels.

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

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

Buy Signal - How to Use True Strength Index TSI Indicator

Oversold - Buy Trading Signal

Overbought Levels - How Do I Use True Strength Index TSI Indicator? - No Nonsense True Strength Index (TSI) Indicator

Overbought - Sell Trading Signal

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

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