TSI Energies Technical Analysis & TSI Trading Signals

Energies 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 energies price changes, making it a leading indicator that follows energies price action direction closely in the energies market.

The TSI is drawn as a blue line, the indicator also plots a signal line which is drawn as a red line, and these two lines are used to generate crossover signals.

TSI also plots a histogram which shows the difference between the TSI Line and the Signal line. This histogram crosses above 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.

Energies Technical Analysis & Generating Trading Signals

The TSI uses various methods to generate energies signals. This energies indicator can be used in the same way as the RSI to determine general energies 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 Energies Trading Crossover ( Histogram Energies Trading crossover not Lines Energy Trading crossover)

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

Energy Trading Signal line Energies 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 the Signal line

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

Divergence Energy

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

Classic Energies Trading Divergence

Energies Trading Classic Bullish Divergence: Lower lows in energies price and higher lows on the indicator

Energies Trading Classic Bearish Divergence: Higher highs in energies price and lower highs on the indicator

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

Hidden Energy Trading Divergence Setup

Energies Trading Hidden Bullish Divergence: higher lows in energies price and lower lows on the indicator

Energies Trading Hidden Bearish Divergence: lower highs in energies price and higher highs on the indicator

Oversold/Overbought Levels on Indicator

This can be used to identify overbought and oversold conditions in energies 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 energies signal - when the areas cross above -25 level a buy is generated.

Sell energies 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.