Multiple True Strength Index

This is an indicator which is based on the True Strength Index (TSI) developed by Willam Blau and published in his book “Momentum, Direction and Divergence”. This is an enhanced version of the TSI indicator available with NinjaTrader and comes with a number of improvements.

Indicator Description

The original True Strength Index indicator published by William Blau uses an EMA for double smoothing or triple smoothing momentum and absolute momentum. The Multiple True Strength Index indicator offers a selection of 30 different moving averages that can be used for smoothing momentum and absolute momentum. The default is set to EMA in line with the original indicator developed by William Blau.

Compared to the standard TSI, this indicator comes with a number of enhancements. It allows for selecting the momentum period, which is used to calculate the momentum prior to smoothing it. Also the indicator can be used for double smoothing – for double smoothing just set the “smoothing period 3” to “1” – and for triple smoothing of momentum and absolute momentum. It further has a signal line and a histogram added.

The indicator can also be used as a trend filter to show whether the market is in an uptrend or downtrend. The current trend can be displayed via paint bars and is exposed as a public property for use with automated strategies or other indicators. The indicator can be used as a “paintbar only” indicator. The trend filter uses two different algorithms:

Signal_Slope: This trend definition is mostly based on the slope of the signal line, but also takes into account whether the TSI signal line is overbought or oversold. A trend change typically requires a thrust bar.

TSI_Signal_Cross: This trend definition is mostly based on crosses of the TSI and the signal line. A bullish trend requires that the TSI has crossed the signal line from below. A bearish trend requires that the TSI has crossed the signal line from above.