Unlocking the True Strength Index (TSI) for MetaTrader 5: A Trader's Guide

Author: Andrey N. Bolkonsky

Welcome to the world of the True Strength Index (TSI) indicator, a powerful tool developed by William Blau. For those looking to enhance their trading strategies, this indicator can be a game changer. You can dive deeper into Blau's insights in his book, Momentum, Direction, and Divergence.

What is the True Strength Index? The TSI is a smoothed momentum indicator that provides a normalized view of market sentiment, ranging from -100 to +100. Positive TSI values indicate an overbought market, while negative values suggest oversold conditions. This can help traders identify potential entry and exit points.

Here’s how to get started with the TSI:

• Make sure to place the WilliamBlau.mqh file in your terminal_data_folderMQL5\Include\
• Put the Blau_TSI.mq5 file in your terminal_data_folderMQL5\Indicators\

Input Parameters:

• q - Momentum smoothing period (default is q=2);
• r - period for the 1st EMA applied to Momentum (default is r=20);
• s - period for the 2nd EMA applied to the result of the first smoothing (default is s=5);
• u - period for the 3rd EMA applied to the result of the second smoothing (default is u=3);
• AppliedPrice - price type (default is AppliedPrice=PRICE_CLOSE).
  

Important Notes:

• q>0;
• r>0, s>0, u>0. If r, s, or u = 1, no smoothing is applied;
• Minimum rates = (q-1+r+s+u-3+1).