Variable List Abbreviation: TSI
Variable Mode(s): Standard, Stock, Futures1, and Futures2
[ Note: uses selected close variable in Stock, Futures1, and Futures2 modes ]
Parameter(s): TSI inside factor, TSI outside factor
Description:
Price momentum oscillator which smoothes the noise in momentum to indicate changes in market trends. Useful for detecting overbought and oversold market conditions, which in turn indicate the possibility of a reactionary trend reversal. The noise in the momentum is reduced by using a double smoothing. It has been suggested that the inner exponential average be a long term smoothing, while the outer exponential average be a short term smoothing.
Calculation:
TSI = 100 * ExpMovAvg ( ExpMovAvg ( momentum ) )
ExpMovAvg ( ExpMovAvg ( absolute value of ( momentum ) ) )
where
momentum = value - previous value
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