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).
As with most momentum oscillators, chartists can derive signals from overbought/oversold readings, centerline crossovers, bullish/bearish divergences and signal line crossovers.
The true strength index (TSI) is a technical indicator used in the analysis of financial markets that attempts to show both trend direction and overbought/oversold conditions. It was first published William Blau in 1991.
The indicator uses moving averages of the underlying momentum of a financial instrument. Momentum is considered a leading indicator of price movements, and a moving average characteristically lags behind price. The TSI combines these characteristics to create an indication of price and direction more in sync with market turns than either momentum or moving average. The TSI is provided as part of the standard collection of indicators offered by various trading platforms.