Price Action (TSI)

The Price Action (TSI) algorithm determines trend direction with calculations based on the True Strength Index technical indicator.

Lendal Pro Trader: TSI Visualizer

The position of the True Strength Index (TSI) relative to the TSI Average Line and Std. Deviation Bands can be viewed using the Lendal Pro Trader: TSI Visualizer. This allows for easy identification of 'overbought' and 'oversold' conditions and imminent trend reversals.

Specific values for each variable mentioned above can be found by opening the data window in TradingView.

TSI Visualizer

Price Action (TSI) Settings

TSI Source

Specifies the price source used to calculate the True Strength Index:

• Open - open price

• High - highest price

• Low - lowest price

• Close - closing price

• Hl2 - average of high + low price (H+L/2)

• Hlc3 - average of high + low + close price (H+L+C/3)

• Ohlc4 - average of open + high + low + close price (O+H+L+C/4)

• Hlcc4 - average of high + low + double-weighted close (H+L+C+C/4)

Elements of other loaded indicators can also be set as a Source. This allows the use of Lendal Visualizers as Confluence factors.

Lendal Visualizers as a data source

Higher Timeframe

Specifies the higher timeframe on which TSI is calculated. If a value other than ‘chart’ is set, this will override the Master Higher Timeframe setting in the Confirmation Control section.

The Higher Timeframe trailer analyzes macro trends over 1000 candles, at the resolution of the current timeframe loaded in TradingView. See the Higher Timeframe Limitations section for details.

TSI Strategy

Specifies if TSI Deviation Period and TSI Std. Deviation will be adjusted manually or set to a short, medium, or long-term preset.

TSI Deviation Period

Specifies the number of lookback periods used to calculate TSI Std. Deviation.

TSI Std. Deviation

Sets the standard deviation used in the TSI trend calculation. Generally, TSI Std. Deviation (sd) should be increased as TSI Deviation Period (p) is increased. e.g. p = 10, sd = 1.9; p = 20, sd = 2; p = 50, sd = 2.1. However, these settings may not suit some assets.

TSI Trending

Sets the index value used to determine if TSI is trending. A TSI trend will occur if this value is exceeded in the positive or negative direction. Decreasing this value will make TSI signals more sensitive to changes in price.

Momentum Smoothing 1

Specifies the amount of smoothing applied to the long EMA values used to calculate TSI.

Momentum Smoothing 2

Specifies the amount of smoothing applied to the short EMA value used to calculate TSI.

Minimum Volatility

Specifies the minimum volatility required for the algorithm to fire signals. Higher values will reduce sensitivity to price fluctuations making signals less frequent, but more reliable. This may prove useful in choppy market conditions.