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Reversion Docs

TSI Overview

The True Strength Index (TSI) is a double-smoothed momentum oscillator that measures the ratio of smoothed price change to smoothed absolute price change, scaled to -100 to +100. Double smoothing reduces noise while maintaining responsiveness.

TSI’s double-smoothing approach produces a very clean momentum signal that’s less prone to false crossovers than single-smoothed oscillators like MACD or ROC.

How True Strength Index Works

Section titled “How True Strength Index Works”

Core Concept

Section titled “Core Concept”
  1. Calculate TSI value from the input price/volume data
  2. Apply smoothing if applicable
  3. Compare to threshold or signal line for signal generation
  4. Interpret: Signals indicate momentum direction or extremes

Key Characteristics:

  • Momentum Indicator = Measures momentum direction and strength
  • Signal Line Available = Yes
  • Bounded = Yes (-100 – +100)

Visual Interpretation

Section titled “Visual Interpretation”

TSI Behavior:

  • Bullish momentum confirmed
  • Bearish momentum confirmed
  • Signal line crossovers provide timing signals

Trading Signals Available on Reversion

Section titled “Trading Signals Available on Reversion”

These are the signal names you select when configuring TSI in the algorithm builder or via the MCP agent:

SignalTriggers WhenTypical Use
tsi_above_thresholdTSI value rises above thresholdBullish momentum confirmed
tsi_below_thresholdTSI value falls below thresholdBearish momentum confirmed
tsi_above_signalLineTSI crosses above its signal lineMomentum accelerating
tsi_below_signalLineTSI crosses below its signal lineMomentum decelerating

Display: Separate pane

Category: Momentum

Threshold range: -100 – +100

Key Characteristics

Section titled “Key Characteristics”

What True Strength Index Does Well:

  • Clear Overbought/Oversold Signals
  • Combines well with trend filters
  • Signal line crossovers signals for entry timing