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Miscellaneous > Ergotic_TSI-2

Article/Author: Origin: http://www.traders2traders.com. Coded by: Ernie Bonugli, Jim Johnson Author: William Blau

Download: Tsi_etc.ela

File Includes:

Indicator - Ergotic_TSI-2
Function - DTI
Function - DTI_Trade
Function - HMU
Function - LMD
Function - MDI
Function - TSI
Function - TVI
Function - DXAverage
Function - TXAverage
Indicator - *DTI Signal
Indicator - DTI
Indicator - DTI_Trade
Indicator - Ergotic_CSI
Indicator - Ergotic_MACD
Indicator - Ergotic_MDI
Indicator - Ergotic_TSI
Indicator - Ergotic_TVI

Category: Indicator > Miscellaneous

Description:

This is one of the techniques described by William Blau in his book "Momentum, Direction and Divergence" (1995). If you like to learn more, we advise you to read this book. His book focuses on three key aspects of trading: momentum, direction and divergence. Blau, who was an electrical engineer before becoming a trader, thoroughly examines the relationship between price and momentum in step-by-step examples. From this grounding, he then looks at the deficiencies in other oscillators and introduces some innovative techniques, including a fresh twist on Stochastics. On directional issues, he analyzes the intricacies of ADX and offers a unique approach to help define trending and non-trending periods.

THis indicator plots 2 TSI indicators: short-term and long-term.

Usage:

The TSI is a smoothed price momentum oscillator and is something of a cross between the RSI and the MACD. The indicator looks for changes in the direction of momentum (reversals). True Strength is a variation of the Relative Strength indicator. It uses a double smoothed exponential moving average of price momentum to eliminate choppy price changes and spot trend changes. This indicator has little or no time lag. An increasing True Strength value indicates increasing momentum in the direction of price movement.




Inputs:

Price - data series
r1 - Length of first EMA1 smoothing of 1 day momentum
s1 - Length of second EMA1 smoothing of 1 day smoothing
u1 - Length of third EMA1 smoothing of 1 day momentum
r2 - Length of third EMA2 smoothing of 1 day momentum
s2 - Length of second EMA2 smoothing of 1 day smoothing
u2 - Length of third EMA2 smoothing of 1 day momentum
Zeroline - zeroline
SmthLen1 - Length of EMA signal line

EasyLanguage Code:
INPUTS: PRICE(MEDIANPRICE), R1(20),  S1(8), U1(8), R2(16),  S2(5), U2(1) ,ZEROLINE(0), SMTHLEN1(1);


VALUE1 = TSI(PRICE, R1, S1, U1);

VALUE2 = XAVERAGE(TSI(PRICE, R1, S1, U1), SMTHLEN1);

VALUE3 = TSI(PRICE, R2, S2, U2);

PLOT1(VALUE1, "TSI1");
PLOT2(VALUE2, "SIGLIN");
PLOT3(VALUE3, "TSI2");
PLOT4(0," ZLINE");