The true strength index - TSI was first published in 1991 by William Blau, designed to determine both the trend and overbought-oversold conditions. The TSI is applicable to intraday time frames as well as longer-term horizons. The true strength indicator - TSI is a variation of the
Relative Strength Index. TSI idicator, a technical momentum indicator that helps traders determine overbought and oversold conditions of a security by incorporating the short-term purchasing momentum of the market with the lagging benefits of moving averages. TSI is an extremely responsive momentum indicator with very little lag time in its representation of price movement momentum. The indicator is designed so that when it is rising above zero, price is also rising. Also, when the indicator is falling below zero, price is also falling. Like most momentum indicators, the TSI uses a diff e rencing function to measure price change. Diff e rencing function is a fancy way to say “subtraction.” The term is used here for comparison to an averaging function, which is used to smooth prices. As price moves mature, they often lose momentum. To measure the dynamics of and an averaging function to correlate the momentum to the price trend, TSI used a differencing function. In other words, the indicator combines the leading characteristic of a differencing momentum calculation with the lagging characteristic of an averaging function to create an indicator that reflects price direction and is in sync with market turns. The TSI is provided as part of the standard collection of indicators offered by various trading platforms.
//+------------------------------------------------------------------+
//| TSI.mq4 |
//| Copyright © 2005, MetaQuotes Software Corp. |
//| http://www.metaquotes.net |
//+------------------------------------------------------------------+
#property copyright "Copyright © 2005, MetaQuotes Software Corp."
#property link "http://www.metaquotes.net"
//----
#property indicator_separate_window
#property indicator_buffers 1
#property indicator_color1 Red
//---- input parameters
extern int First_R=5;
extern int Second_S=8;
//---- buffers
double TSI_Buffer[];
double MTM_Buffer[];
double EMA_MTM_Buffer[];
double EMA2_MTM_Buffer[];
double ABSMTM_Buffer[];
double EMA_ABSMTM_Buffer[];
double EMA2_ABSMTM_Buffer[];
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
IndicatorBuffers(7);
SetIndexBuffer(1, MTM_Buffer);
SetIndexBuffer(2, EMA_MTM_Buffer);
SetIndexBuffer(3, EMA2_MTM_Buffer);
SetIndexBuffer(4, ABSMTM_Buffer);
SetIndexBuffer(5, EMA_ABSMTM_Buffer);
SetIndexBuffer(6, EMA2_ABSMTM_Buffer);
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0,TSI_Buffer);
SetIndexLabel(0,"TSI");
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custor indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//---- TODO: add your code here
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int counted_bars=IndicatorCounted();
int limit,i;
limit=Bars-counted_bars-1;
for(i=Bars-1;i>=0;i--)
{
MTM_Buffer[i]=Close[i]-Close[i+1];//iMomentum(NULL,0,1,PRICE_CLOSE,i);
ABSMTM_Buffer[i]=MathAbs(MTM_Buffer[i]);
//TSI_Buffer[i]=ABSMTM_Buffer[i];
}
for(i=Bars-1;i>=0;i--)
{
EMA_MTM_Buffer[i]=iMAOnArray(MTM_Buffer,0,First_R,0,MODE_EMA,i);
EMA_ABSMTM_Buffer[i]=iMAOnArray(ABSMTM_Buffer,0,First_R,0,MODE_EMA,i);
//TSI_Buffer[i]=EMA_ABSMTM_Buffer[i];
}
for(i=Bars-1;i>=0;i--)
{
EMA2_MTM_Buffer[i]=iMAOnArray(EMA_MTM_Buffer,0,Second_S,0,MODE_EMA,i);
EMA2_ABSMTM_Buffer[i]=iMAOnArray(EMA_ABSMTM_Buffer,0,Second_S,0,MODE_EMA,i);
//TSI_Buffer[i]=EMA2_ABSMTM_Buffer[i];
}
for(i=Bars-1;i>=0;i--)
{
TSI_Buffer[i]=100.0*EMA2_MTM_Buffer[i]/EMA2_ABSMTM_Buffer[i];
}
//---- TODO: add your code here
//----
return(0);
}
//+------------------------------------------------------------------+
