How it is calculated
The change m is the price minus the previous price. TSI is 100 times an EMA over the short length of an EMA over the long length of m, divided by the same double EMA of the absolute m. The signal line is an EMA of TSI over the signal length. Every EMA is seeded with the plain mean of its own first values. There is no value while the smoothed absolute change is zero, which only happens before price first moves. After Blau 1991.
Reference: Blau 1991
How to read it
Above zero the smoothed changes are mostly up, below zero mostly down; values near 100 or -100 mean nearly every bar moved the same way. Crossings of zero and of the signal line mark turns. The double smoothing makes it calmer than RSI but also later. Divergences with price hint at a fading trend.
In a strategy
A trend entry when TSI crosses above its signal line while above zero: ctx.ind("tsi", long=25, short=13, signal=13) gives .tsi and .signal, each compared with the previous bar.
Inputs
| Input | Type | Default | Range or choices |
|---|---|---|---|
Long lengthlong | Whole number | 25 | min 1, max 5000 |
Short lengthshort | Whole number | 13 | min 1, max 5000 |
Signal lengthsignal | Whole number | 13 | min 1, max 5000 |
Sourcesource | Price | "close" | close, open, high, low, hl2, hlc3, ohlc4, hlcc4 |
What it draws
| Line | Drawn as |
|---|---|
| TSI | Line |
| Signal | Line |
Guide lines at 0.
Used in
No strategy template reads it yet.