TSI Indicator

TSI Indicator

TSI Indicator determines the exact market shift and displays trend reversal signals in real time. Best suited for TSI intraday trading on forex and stock trends on the MTF charts of the MT5 terminal.

TSI is one of the simplest trend following indicators designed to predict intraday buy/sell signals in the currency and stock markets.

During testing, we found that the indicator adapts perfectly to all timeframes of the MT5 platform. Moreover, you can use it along with any trading strategy or automatic price channel according to the current market trend.

This indicator is ideal for beginners who need to correctly assess trends during times of irregular market volatility. In addition, it improves trading accuracy when combined with basic technical indicators or trend-oriented trading strategies.

This guide explains how to use the TSI indicator to identify profitable trading opportunities in the financial markets.

How to make profitable buy-sell decisions using the TSI Indicator in MT5
The True Strength Index (TSI) is sensitive to critical price changes and generates instant trend reversal signals. When the value of the oscillator exceeds the zero line, we consider it a bullish trend signal. Conversely, in a bearish trend, the indicator line remains below zero. At the same time, this indicator paints its line in blue when moving up and orange when moving down.

Apart from price reversals, you can also use the indicator to study trend continuation patterns. For example, TSI moves above zero first. Then, if the indicator line refuses to return below zero and continues to bounce higher, we can confirm the price setup as a bullish continuation pattern.

In the chart above, the price has made a bullish breakout of resistance while the indicator has repeatedly generated uptrend signals confirming a buy entry.

Conclusion
The TSI indicator can help you evaluate accurate buy/sell signals and offer multiple options for evaluating new trading opportunities. As a beginner, you may want to start trading with the indicator first along with simple support/resistance and trend oscillators. At the same time, experienced traders use it with advanced price action signals and chart patterns to take advantage of highly profitable trading opportunities.