Shadow True Strength Index with Two Smoothed Signal Lines
Summary
The document describes a True Strength Index oscillator paired with two sequentially smoothed signal lines, called shadows. It lists adjustable inputs for the price source and its period, two TSI smoothing periods, each shadow’s averaging period and method, and overbought and oversold thresholds.
The TSI is calculated as the ratio of twice-smoothed price change to twice-smoothed absolute price change, scaled by 100. The first shadow is a moving average of the TSI, and the second is a moving average of the first shadow. This defines an indicator construction rather than a trading rule: the document gives no entry or exit conditions, market, test results, or evidence that the settings predict returns. The usefulness of the oscillator therefore depends on parameter choices and independent evaluation.
Key ideas
- The TSI normalizes smoothed price changes by smoothed absolute price changes and scales the result.
- The indicator adds two sequential moving-average lines to the TSI.
- Users can select smoothing periods, moving-average methods, price inputs, and threshold levels.
- The description does not provide a tested strategy or evidence of predictive performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.