A Configurable True Strength Index with Smoothed Momentum Inputs

Summary

This indicator description outlines a configurable version of the True Strength Index (TSI). It applies successive moving-average smoothing to a rate-of-change series, then divides that smoothed directional measure by a similarly smoothed series of absolute rate of change. The ratio is scaled, and a separately parameterized average of the TSI serves as a signal line. Adjustable upper and lower reference levels, along with a zero line, are intended to help users inspect turns and momentum conditions.

The author says the input can be changed from rate of change to alternatives such as momentum, the detrended price oscillator, the commodity channel index, or repulse, with parameter adjustments. The page offers suggested settings but does not specify them in the provided text. It gives no entry or exit rules, comparative analysis, or backtest results, so it does not establish which input or configuration performs best. The indicator is a flexible momentum tool whose usefulness depends on parameter choices and independent testing.

Key ideas

• The TSI is formed from smoothed rate of change divided by smoothed absolute rate of change.
• A configurable signal line and upper and lower reference levels support interpretation of momentum turns.
• Alternative inputs include momentum, DPO, CCI, and repulse.
• The document provides no trading rules or performance evidence for its configurations.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.