Multiple True Strength Index

True Strength Index for NT8

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 TSI 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 standard TSI indicators, our version comes with a number of enhancements. It allows for selecting the momentum period, which is used to calculate the momentum prior to smoothing it. This TSI indicator can also be used for double smoothing. The “smoothing period 3” is then set to “1” and for triple smoothing of momentum and absolute momentum. It further has a signal line and a histogram added.

The TSI indicator can also be used as a trend filter to show whether the market is  up- or down-trending. 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.

Other Library Indicators

The True Strength Index indicator is most reliable when aligned with the mid/higher time frame trend bias and Volume / Range Analysis. You may for example review the trend bias using the Donchian Channel, Heikin Ashi Candles, the Regression Channel, Daily Regression Channel or the Traders Dynamic Index (TDI). The Donchian Channel, TDI indicator and the Regression Channel were discussed our Indicator Spotlight. For Volume / Range Analysis you may have a look at the Force Index, Relative Volume or Relative Ranges. Apart from the Multiple TSI indicator, our Multiple Series Indicator Category include the Multiple Deviation Bands, Multiple MACD, Multiple Moving Average Wave and the Multiple Keltner Channels indicators.

The True Strength Index indicator is available for NinjaTrader 8.