TSI stands for True Strength Index and was created by William Blau and introduced in Stocks & Commodities Magazine. The True Strength Index (TSI) is a momentum oscillator based on a double smoothing of price changes. By smoothing price changes, the TSI plots a steadier line that filters out the noise (whipsaws and headfakes).

tsi

As with most momentum oscillators, chartists can derive signals from overbought/oversold readings, centerline crossovers, bullish/bearish divergences and signal line crossovers.

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