TSI CFD Analysis and TSI CFD Signals

TSI Indicator

Developed by William Blau

TSI is a momentum indicator. The TSI is drawn by using a momentum calculation that reacts faster and is more responsive to cfds price changes, making it a leading indicator that follows cfds price action direction closely in the cfds trading market.

The TSI is drawn as a blue-line, the indicator also plots a signal line which is drawn as a red-line, & these 2 lines are used to generate cross-over signals.

TSI also plots a histogram which shows the difference between the TSI Line & the Signal Line. This histogram crosses above or below the center-lines, histogram levels above the center line shows a bullish cross-over signal, while center line levels below the center line shows a bearish crossover signal.

CFDs Analysis and How to Generate Signals

The TSI uses various methods to generate signals. This indicator can be used in the same way as the RSI to determine general trend direction of the markets. Overbought and oversold levels can also be shown using TSI. The most common methods of generating trading signals are:

Zero line CFD Trading Cross Over ( Histogram CFDs Trading crossover not Lines CFDs Trading crossover )

• Buy - when the histogram crosses above the 0 a buy is generated
• Sell - when the histogram crosses below 0 a sell is generated

CFD Trading Signal line CFDs Trading Crossover

• A buy is generated when the TSI line crosses above the Signal-line
• A sell is generated when the TSI line crosses below Signal-line

This signal is the same as the one above & the timing corresponds to the time when the histogram crossovers happen.

Divergence CFDs

Divergence is used to look for potential trend reversal point of a cfd. Reversal divergence setups are:

Classic CFD Trading Divergence

CFD Classic Bullish Divergence: Lower lows in cfds price and higher lows on the indicator

CFD Classic Bearish Divergence: Higher highs in cfds price and lower highs on the indicator

Divergence trading can also be used in identifying potential trend continuation points in cfds price action direction. The continuation divergence trading setups are:

Hidden CFDs Trading Divergence Setup

CFD Hidden Bullish Divergence: higher lows in cfds price and lower lows on the indicator

CFD Hidden Bearish Divergence: lower highs in cfds price and higher highs on the indicator

Oversold/Overbought Levels on Indicator

This can be used to identify overbought and oversold conditions in cfds price action movements.

• Overbought condition - levels being greater than the +25 level
• Oversold condition - levels being less than the -25 level

Trades can be generated when the TSI crosses these levels.

Buy signal - when the areas cross above -25 level a buy is generated.

Sell signal - when the areas cross below +25 level a sell is generated.

Oversold

Overbought

The overbought/oversold levels are indicated using horizontal lines drawn at the +25 & -25 levels.