TSI MACD indicator: advanced oscillator
TSI MACD indicator - is an oscillator resulting from a combination of MACD and TSI indicators.
If with MACD indicator While all traders are familiar with the TSI indicator, not everyone knows about it.
TSI indicator (True Strength Index) - True Strength Index, which is calculated as twice smoothed by exponential method of price momentum value.
The principle of TSI MACD indicator is that the initial calculation is not based on the momentum of the price as in TSI, but on the MACD values (calculated as the difference between the MACD value on the last bar with the MACD value on the previous bar).
TSI MACD indicator signals
Intersection of indicator lines
- The TSI MACD line (blue on the chart) crosses the signal line (red) from bottom to top - buy entry.
- The TSI MACD line crosses the signal line from top to bottom - sell entry.
Intersection of overbought and oversold zones
- If the price is above the +70 level, it is possible that the currency pair repurchasedThe price should be expected to fall, and when the TSI MACD line crosses the +70 level from top to bottom - a sell signal.
- If the price is below the -70 level, perhaps the pair resoldIf the TSI MACD line crosses the -70 level from bottom to top, a buy signal should be expected.
Using divergences
Like any other oscillator, the TSI MACD indicator allows you to track all types of divergences.
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