TSI Commodities Technical Analysis and TSI Trading Signals
Commodity Trading Trend Strength 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 commodities trading price changes, making it a leading indicator that follows commodities trading price action direction closely in the commodities market.
The TSI is drawn as a blue line, the indicator also plots a signal line which is drawn as a redline, & these two lines are used to generate cross over signals.
TSI also plots a histogram which shows the difference between the TSI Line and the Signal Line. This histogram crosses above the or below the center lines, histogram levels above the center-line shows a bullish crossover signal, while center-line levels below the center line shows a bearish crossover signal.
Commodities Technical Analysis & Generating Trading Signals
The TSI uses various methods to generate commodity signals. This commodity indicator can be used in the same way as the RSI to determine general commodity 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 Commodities Trading Crossover ( Histogram Commodities Trading crossover not Lines Commodity Trading crossover)
- Buy - when the histogram crosses above 0 a buy is generated
- Sell - when the histogram crosses below 0 a sell is generated
Commodity Trading Signal line Commodities Trading Crossover
- A buy is generated when TSI line crosses above Signal Line
- A sell is generated when TSI line crosses below Signal Line
This signal is the same as the one above and the timing corresponds to the time when the histogram crossovers happen.
Divergence Commodity
Divergence is used to look for potential commodity trend reversal point of a commodity. The reversal divergence setups are:
Classic Commodities Trading Divergence
Commodity Trading Classic Bullish Divergence: Lower lows in commodities trading price & higher lows on the indicator
Commodity Trading Classic Bearish Divergence: Higher highs in commodities trading price & lower highs on the indicator
Divergence trading can also be used in identifying potential commodity trend continuation points in commodities trading price action direction. Continuation divergence trading setups are:
Hidden Commodity Trading Divergence Setup
Commodity Trading Hidden Bullish Divergence: higher lows in commodities trading price & lower lows on the indicator
Commodity Trading Hidden Bearish Divergence: lower highs in commodities trading price & higher highs on the indicator
Oversold/Overbought Levels on Indicator
This can be used to identify overbought & oversold conditions in commodities 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 TSI crosses these levels.
Buy commodities trading signal - when the areas cross above -25 level a buy is generated.
Sell commodities trading 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 and -25 levels.
