This is the TimeToTrade help wiki. Use the TimeToTrade Trigger Trading Technology™ to execute your trades when Price, Candle Stick, Trend Line, Volume and Technical Analysis chart conditions are met - no coding required. Trade directly in the world’s global markets. Backtest your Trading Strategies. Calculate your UK HMRC Capital Gains Tax liabilities. Manage your Investment Club.
True Strength Index
The True Strength Index (TSI) is a momentum-based indicator that was developed by William Blau and is a variation of the Relative Strength Index. It is used to help determine trend and identify overbought and oversold conditions. The indicator has very limited time lag compared to for example a moving average, and so is particularly useful for spotting early changes of trend.
The TSI will rise when the short term trend is up and fall when the shot term trend is down. An increasing TSI indicates increasing momentum in the direction of the price movement.
When the indicator is rising above zero, the price is always rising. When the indicator is falling below zero, the price is always falling.
Technical analysts have their own preferences as to what are considered overbought and oversold levels. Typically values of -25 and +25 are used to indicate levels whether the market is overbought or oversold, but +/-30 and +/-50 are also common.
The TSI chart typically includes a signal line which is a moving average of the TSI itself. When TSI crosses above or below the signal line, this can indicate a change of trend and price reversal and provides an earlier buy / sell signal than waiting for TSI itself to move above / below zero.
TSI crossing below the signal line combined with a TSI of below -25 indicating oversold conditions, can be interpreted as a buy signal; whilst TSI crossing above the signal line combined with TSI above 25 implying conditions are overbought, can be interpreted as a sell signal.
Another means of interpreting the TSI is to look for divergences between price movement and the indicator. For example, where price makes new lows but TSI fails to make new lows, this would indicate momentum is increasing and could signal a buy opportunity. On the other hand, where a market’s price makes new highs but the TSI fails to reach new highs, this could indicate weakening momentum and a possible shorting opportunity.
- Bullish signal: TSI rising above zero
- Bearish signal: TSI falling below zero
- Bullish signal: TSI crossing below -25 and turning up
- Bearish signal: TSI crossing above 25 and turning down
- Bullish signal: TSI crosses above its moving average
- Bearish signal: TSI crosses below its moving average
True Strength Index Formula
- Momentum = The current CLOSE price - previous interval CLOSE price (the Momentum indicator)
- EMA(Momentum, r) = Exponential Moving Average of Momentum over periods where the default is 25
- EMA(EMA(Momentum, r), s) = Exponential Moving Average of EMA(Momentum, r) over periods where the default is 13
- |Momentum| = The absolute value of Momentum
True Strength Index Indicator
The True Strength Index indicator can be displayed on the TimeToTrade charts. To add the True Strength Index indicator to the TimeToTrade charts, go to the chart settings and click on the 'Add Indicator' button. Click on the search box and type the name of the indicator that you are looking for, or for example type True Strength Index and scroll through the results:
After adding the True Strength Index indicator, within the chart settings, click on it to set the parameters and change colours.
True Strength Index Alerts
Alerts can be set up to provide an Email or SMS text message notification of when your True Strength Index indicator chart conditions have been met, backtest trading strategies or execute demo trades. To learn more:
It has never been easier to execute your trading strategy. Our Trigger Trading Technology ® means you can now automatically execute your trades directly in the world’s global markets.
You need never miss a trading opportunity again!
Do you want to:
- buy when your technical analysis chart conditions are met? Really buy, not just get an email or sms alert?
- or sell when a support trend line is broken?
- or back-test your strategy going back as far as 30 years?
TimeToTrade's Trigger Trading Technology™ is truly game changing. It gives you a trading advantage. The power to take your trading to a new level.
Open a FREE TimeToTrade account today to:
- Trade UK, US and European Shares - apply now
- Execute trades when your Price, Candlestick, Trend Line, Volume and Technical Analysis chart conditions are met using the Trigger Trading Technology® - learn more - help video
- Email and SMS Trigger Trading™ Alerts - learn more
- Trade Off The Chart - learn more
- Back Test Trading Strategies with up to 30 years of historical data - learn more
- Create Simulated Trading Accounts to test your Trigger Trading™ Strategies - learn more
- Real time Forex, UK, European and US stock market data - learn more
- 170+ Technical Analysis and Candlestick Pattern Indicators - learn more
- All the tools you need to set up and run a successful investment club - learn more
- Manage your Portfolio and calculate UK HMRC Capital Gains liabilities and SA 108 CGT Tax Returns - learn more
- Create Trading Competitions for you and your friends - learn more
- Apply for a trading account today to get the Live Account Features - apply now
Apply now to try our superb platform and get your trading advantage.
The information and data provided is for educational and informational purposes only. Interpretation and use of the information and data provided is at the user's own risk. All information and data on this website is obtained from sources believed to be accurate and reliable. However, errors or omissions are possible due to human and/or mechanical error. All information and data is provided "as is" without warranty of any kind. We make no representations as to the accuracy, completeness, or timeliness of the information and data on this site and we reserve the right, in its sole discretion and without any obligation, to change, make improvements to, or correct any errors or omissions in any portion of the services at any times. Past performance is not a guarantee of future results. Trading carries a high level of risk to your capital and can result in losses that exceed your deposits. It may not be suitable for everyone so please ensure you fully understand the risks involved.
All services are provided by TigerWit Limited. TimeToTrade is a trading name of TigerWit Limited (a company registered in England and Wales under number 9479466). Our Registered address is TigerWit, 7th Floor, Augustine House, 6A Austin Friars, London, EC2N 2HA, England. TigerWit Limited is authorised and regulated by the Financial Conduct Authority number 679941.
The trading services offered by TigerWit Limited are not available to residents of the United States and are not intended for the use of any person in any country where such services would be contrary to local laws or regulations. Subscriptions to TimeToTrade products are available if you are not eligible for trading services.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading spread bets with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. All clients should be aware that trading involves risk.
TimeToTrade is a Sensatus product.