A momentum oscillator that uses double-smoothed price change to measure trend direction and overbought or oversold conditions. The TSI fluctuates between positive and negative values, with readings above zero indicating bullish momentum and readings below zero indicating bearish momentum. Signal line crossovers and centreline crosses are commonly used as trade entry and exit signals.
Example
“The TSI crossed above its signal line and moved into positive territory, confirming the shift from a bearish to a bullish trend on the daily chart.”