Back to Indicators
MomentumLeading

TSI — True Strength Index

Overview

The True Strength Index applies a double-smoothing technique to price momentum, producing a clean oscillator that reveals overbought/oversold conditions and trend direction with minimal noise. TSI signals are particularly reliable on daily charts across stocks and crypto. Combine TSI crossovers with the MACD for layered momentum confirmation in your trading strategies.

How It Works

TSI = 100 × [Double-Smoothed Price Change / Double-Smoothed Absolute Price Change]. The double smoothing typically uses a 25-period long EMA and a 13-period short EMA applied to momentum values. A signal line (7 or 12 EMA of TSI) generates crossover signals.

Key Signals

  • TSI crossing above the signal line = bullish momentum.
  • TSI crossing below the signal line = bearish momentum.
  • TSI crossing the zero line confirms a trend direction change.
  • TSI divergence from price indicates fading momentum and potential reversal.

Common Mistakes

  • Ignoring the zero-line context — TSI above zero is inherently bullish.
  • Using TSI on very short timeframes where the double smoothing adds excessive latency.
  • Not combining TSI with volume analysis to confirm the strength of momentum signals.

More Momentum Indicators

KST — Know Sure Thing

KST (Know Sure Thing) is a smoothed rate-of-change oscillator that combines four different ROC timeframes into a single weighted line, revealing broad momentum shifts across multiple cycles. It was designed by Martin Pring for identifying major trend changes in <a href="/market/stocks" class="text-primary hover:underline">stocks</a> and is equally useful in <a href="/market/crypto" class="text-primary hover:underline">crypto</a> markets. Compare it with the <a href="/academy/indicators/rate-of-change" class="text-primary hover:underline">ROC</a> and other momentum tools in our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a>.

ADX — Average Directional Index

ADX measures the strength of a trend regardless of its direction, telling you whether the market is trending or ranging — critical information for choosing the right <a href="/strategies" class="text-primary hover:underline">trading strategy</a>. Pair it with the <a href="/academy/indicators/parabolic-sar" class="text-primary hover:underline">Parabolic SAR</a> for a powerful trend-following combo that filters noise and tightens stops automatically. ADX is equally effective across <a href="/market/crypto" class="text-primary hover:underline">crypto</a>, <a href="/market/stocks" class="text-primary hover:underline">stocks</a>, and <a href="/market/forex" class="text-primary hover:underline">forex</a> — explore our full <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a> to see how it integrates with other momentum tools.

Coppock Curve

The Coppock Curve is a long-term momentum indicator originally designed to identify major buying opportunities in <a href="/market/stocks" class="text-primary hover:underline">stock</a> indices after significant market bottoms. It combines rate-of-change over two long lookback periods with WMA smoothing for a signal that fires rarely but with high conviction. Explore our <a href="/academy/indicators" class="text-primary hover:underline">indicator guide library</a> for complementary long-term tools and <a href="/strategies" class="text-primary hover:underline">strategies</a>.

Fisher Transform

The Fisher Transform converts price data into a Gaussian normal distribution, making turning points razor-sharp and easier to identify compared to standard oscillators like the <a href="/academy/indicators/rsi" class="text-primary hover:underline">RSI</a>. It is especially effective on lower timeframes in <a href="/market/crypto" class="text-primary hover:underline">crypto</a> and <a href="/market/forex" class="text-primary hover:underline">forex</a> markets where quick reversals are common. Add it to your <a href="/strategies" class="text-primary hover:underline">trading strategies</a> for precision timing at potential reversal zones.