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I want to clear up a few points
[USER=84784]@Wilham[/USER] raised a valid point & asked about additional information from [USER=33203]@MovingAverage[/USER] to which trend indicator he uses.

Interest turned to the (TSI) indicator
Simply put, the (TSI) is a double smooth momentum oscillator of changing prices. The (TSI) captures these fluctuations & then applies smoothing. Pretty simple really.

Let me explain the (TSI) in English
The (TSI) is a calculation of the price change from one period to the next. It is accomplished by calculating a 25-period (EMA) of this price change. (the first step of the process)

Here is the twist for double smoothing
Then the results of the first step - calculate the 13-period (EMA) of this 25-period (EMA). Wham, bam, thank you, mam - we have just created double smoothing.

The Signal Line
[USER=17857]@qldfrog[/USER] was curious about the signal line. The signal line is simply an exponential moving average of TSI. [USER=33203]@MovingAverage[/USER] made the reference to the (MACD) signal line as a mental comparison & the comparison stops there.

The Buy Signal
In my previous post, I used a simple "Signal line crossover" to demonstrate the simplicity of getting into an uptrend. Using the zero-line cross is the simplest way to generate a signal. (posted previously)

For the more advanced
The first part, which is the double smoothed price change, sets the (+/-) representation of the TSI. The indicator is negative when the double smoothed price change drops below the (zero-line) & positive when it's above the (zero-line). The double smoothed absolute price change normalizes the indicator & limits the range of the (TSI) oscillator.

In other words
The TSI indicator measures the double smoothed price change relative to the double smoothed absolute price change. A string of large positive price changes results in relatively high positive readings, signalling strong upside momentum. A string of large negative price changes pushes the TSI into negative territory.

The (TSI) is an oscillator that fluctuates between positive & negative in relation to the zero-line
As with many momentum oscillators, the centreline defines the overall bias. Positive momentum when TSI is above the (zero-line) & negative momentum when it's below.

If this has sparked an interest
You can find more about momentum indicators by doing a "search by [USER=57364]@Skate[/USER]" - I'm sure I've made dozens of posts on the subject.

Skate.

<blockquote data-quote="Skate" data-source="post: 1115130" data-attributes="member: 57364">I want to clear up a few points[USER=84784]@Wilham[/USER] raised a valid point &amp; asked about additional information from [USER=33203]@MovingAverage[/USER] to which trend indicator he uses. Interest turned to the (TSI) indicator Simply put, the (TSI) is a double smooth momentum oscillator of changing prices. The (TSI) captures these fluctuations &amp; then applies smoothing. Pretty simple really.Let me explain the (TSI) in EnglishThe (TSI) is a calculation of the price change from one period to the next. It is accomplished by calculating a 25-period (EMA) of this price change. (the first step of the process)Here is the twist for double smoothing Then the results of the first step - calculate the 13-period (EMA) of this 25-period (EMA).&nbsp; Wham, bam, thank you, mam - we have just created double smoothing.The Signal Line[USER=17857]@qldfrog[/USER] was curious about the signal line. The signal line is simply an exponential moving average of TSI. [USER=33203]@MovingAverage[/USER] made the reference to the (MACD) signal line as a mental comparison &amp; the comparison stops there.The Buy SignalIn my previous post, I used a simple &quot;Signal line crossover&quot; to demonstrate the simplicity of getting into an uptrend. Using the zero-line cross is the simplest way to generate a signal. (posted previously)For the more advancedThe first part, which is the double smoothed price change, sets the (+/-) representation of the TSI. The indicator is negative when the double smoothed price change drops below the (zero-line) &amp; positive when it&#039;s above the (zero-line). The double smoothed absolute price change normalizes the indicator &amp; limits the range of the (TSI) oscillator. In other wordsThe TSI indicator measures the double smoothed price change relative to the double smoothed absolute price change. A string of large positive price changes results in relatively high positive readings, signalling strong upside momentum. A string of large negative price changes pushes the TSI into negative territory.The (TSI) is an oscillator that fluctuates between positive &amp; negative in relation to the zero-lineAs with many momentum oscillators, the centreline defines the overall bias. Positive momentum when TSI is above the (zero-line) &amp; negative momentum when it&#039;s below.If this has sparked an interestYou can find more about momentum indicators by doing a &quot;search by [USER=57364]@Skate[/USER]&quot; - I&#039;m sure I&#039;ve made dozens of posts on the subject.Skate.</blockquote>

[QUOTE="Skate, post: 1115130, member: 57364"] [B]I want to clear up a few points[/B] [USER=84784]@Wilham[/USER] raised a valid point & asked about additional information from [USER=33203]@MovingAverage[/USER] to which trend indicator he uses. [B]Interest turned to the (TSI) indicator [/B] Simply put, the (TSI) is a double smooth momentum oscillator of changing prices. The (TSI) captures these fluctuations & then applies smoothing. Pretty simple really. [B]Let me explain the (TSI) in English[/B] The (TSI) is a calculation of the price change from one period to the next. It is accomplished by calculating a 25-period (EMA) of this price change. (the first step of the process) [B]Here is the twist for double smoothing [/B] Then the results of the first step - calculate the 13-period (EMA) of this 25-period (EMA). Wham, bam, thank you, mam - we have just created double smoothing. [B]The Signal Line[/B] [USER=17857]@qldfrog[/USER] was curious about the signal line. The signal line is simply an exponential moving average of TSI. [USER=33203]@MovingAverage[/USER] made the reference to the (MACD) signal line as a mental comparison & the comparison stops there. [B]The Buy Signal[/B] In my previous post, I used a simple "Signal line crossover" to demonstrate the simplicity of getting into an uptrend. Using the zero-line cross is the simplest way to generate a signal. (posted previously) [B]For the more advanced[/B] The first part, which is the double smoothed price change, sets the (+/-) representation of the TSI. The indicator is negative when the double smoothed price change drops below the (zero-line) & positive when it's above the (zero-line). The double smoothed absolute price change normalizes the indicator & limits the range of the (TSI) oscillator. [B]In other words[/B] The TSI indicator measures the double smoothed price change relative to the double smoothed absolute price change. A string of large positive price changes results in relatively high positive readings, signalling strong upside momentum. A string of large negative price changes pushes the TSI into negative territory. [B]The (TSI) is an oscillator that fluctuates between positive & negative in relation to the zero-line[/B] As with many momentum oscillators, the centreline defines the overall bias. Positive momentum when TSI is above the (zero-line) & negative momentum when it's below. [B]If this has sparked an interest[/B] You can find more about momentum indicators by doing a "search by [USER=57364]@Skate[/USER]" - I'm sure I've made dozens of posts on the subject. Skate. [/QUOTE]

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