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Chess68 said:. Nick Member Donor. May i know how do you use all these 3 indicators to identify your setup? Last edited by a moderator: Aug 3, Nick Look at the chart and think. What do you believe it is telling you? Understand what each line of the indicator is actually doing and I think you can answer your questions.
Chande Momentum Oscillator Definition
How about you tell us what you think the purpose is and what the setup is and then others can give their opinions. More opinions, more possibilities of finding the answers. Nick said:. I have captured my observations in the chart attached. To be honest, i don't quite understand the codes but able to pick up some observations to my best ability. What i would like to learn is the process how you interpret the chart Any feedback are greatly appreciated.
Last edited: Aug 3, Nick Nice observations. Now do you feel you know more about the indicators? I do not use any of these so Markos may have better insight on them. Some depends on how aggressive you want to trade. Here is how I see your chart. At observation 1 price breaks below the moving average and the week and day TMO both red so looks like good sell signal if already in a trade or a buy puts signal. Between observation 1 and 3 white dashed line just hold put position as moving average is still slightly sloped down and week TMO is red.
Ignore daily TMO humps.
True Strength Index (TSI)
If you want to be aggressive you could sell put or buy a call at point of while line. Price has moved away from the moving average a good amount and at the end of a somewhat long down move so a reversal is more likely.
Thread starter BenTen Start date Dec 18, Prev 1 … Go to page. First Prev 10 of 11 Go to page. I do not trade on crossovers, I use it to give me a fast view of where in the cycles we are, is the momo starting to wain for a reversion or is the larger TF rolling over. I guess one could tailor the TF and length or multiplication factor, go for the really stretched hard securities.
Last edited: Mar 5, CoachT New member.
True Momentum Oscillator for ThinkorSwim
Could you help explain how you were able to adjust your watchlist to add the TMO options. CoachT Not me but here is a brief video. This plots a rounded value to give you a better idea of where in the cycle the signal line is. Giving a much better picture of trend, tend reversals and divergence than momentum oscillators using price. White. Does someone know how to add arrows to the script when TMO study turns green.
Mark New member. Here is a colored vertical line for buy and sell signals on TMO main and signal cross. This is awesome, Mark can you make them arrows instead of lines.
Thanks bunch! Mark Is there a way to scan for the buy and sell signals? BenTen Administrative Staff. Just select Main crosses above or below Signal and within how many bars.The true strength index is a technical momentum oscillator. The indicator is primarily used to identify overbought and oversold conditions in an asset's price, spot divergence, identify trend direction and changes via the centerline, and highlight short-term price momentum with signal line crossovers.
Since the TSI is based on price movements, oversold and overbought levels will vary by the asset being traded. Mark extreme TSI levels, on the asset being traded, to see where overbought and oversold is. Being oversold doesn't necessarily mean it is time to buy, and when an asset is overbought it doesn't necessarily mean it is time to sell.
Traders will typically watch for other signals to trigger a trade decision. For example, they may wait for the price or TSI to start dropping before selling in overbought territory.
Alternatively, they may wait for a signal line crossover. A signal line crossover occurs when the TSI line crosses the signal line. When the TSI crosses above the signal line from below, that may warrant a long position. When the TSI crosses below the signal line from above, that may warrant sellng or short selling.
Signal line crossovers occur frequently, so should be utilized only in conjunction with other signals from the TSI. For example, buy signals may be favored when the TSI is above the centerline above zero. Or sell signals may be favored when the TSI is in overbought territory.
The centerline crossover is another signal the TSI generates. Price momentum is positive when the indicator is above zero and negative when it is below zero. Some traders use the centerline for a directional bias. For example, a trader may decide only to enter a long position if the indicator is above its centerline. Traders can use support and resistance levels created by the true strength index to identify breakouts and price momentum shifts.
For instance, if the indicator breaks below a trendlinethe price may see continued selling. Divergence is another tool the TSI provides.
If the price of an asset is moving higher, while the TSI is dropping, that is called bearish divergence and could result in a downside price move. If the TSI is rising while the price is falling, that could signal higher prices to come.
This is called bullish divergence. Divergence is a poor timing signal, so it should only be used in conjunction with other signals generated by the TSI or other technical indicators.
The TSI is smoothing price changes to create a technical oscillator. The moving average convergence divergence MACD indicator is measuring the separation between two moving averages. Both indicators are used in similar ways for trading purposes, yet they are not calculated the same and will provide different signals at different times.
Many of the signals provided by the TSI will be false signals. That means the price action will be different than expected following a trade signal. For example, during an uptrend, the TSI may cross below the centerline several times, but then the price proceeds higher even though the TSI indicates momentum has shifted down. Signal line crossovers also occur so frequently that they may not provide a lot of trading benefit.
Such signals need to be heavily filtered based on other elements of the indicator or through other forms of analysis. The TSI will also sometimes change direction without price changing direction, resulting in trade signals that look good on the TSI but continue to lose money based on price. Divergence also tends to unreliable on the indicator. Divergence can last so long that it provides little insight into when a reversal will actually occur.
Also, divergence isn't always present when price reversals actually do occur.
The TSI should only be used in conjunction with other forms of analysis, such as price action analysis and other technical indicators.What's new New posts New profile posts. Market Sentiment. Log in Register. Search titles only.
It calculates momentum using the delta of price. Giving a much better picture of trend, tend reversals and divergence than momentum oscillators using price. Rich BB code :. HideBubble ; Signal. HideTitle ; addCloud Main, Signal, color. SetDefaultColor Color. HideBubble ; ob. HideBubble ; os. HideTitle ; addCloud ob, length, color. Last edited: Jan 28, This one runs under my RSI Laguerre on a daily chart.Momentum is positive when the oscillator is positive pointing to a bullish market bias and vice versa.
It was developed William Blau and consists of 2 lines: the index line and an exponential moving average of the TSI, called the signal line. Traders may look for any of the following 5 types of conditions: overbought, oversold, centerline crossover, divergence and signal line crossover. The indicator is often used in combination with other signals. Similar to Elder's Impulse, when a buy signal is met, bars turn blue.
When a sell signal is met, bars turn Pink. When signals are mixed, bars turn grey. Depending on direction of trend, gray bars can be considered "Hold" or take profit signals. You can change the This is based on the original TSI Indicator that's already built in.
The PC is originally taken as the change between the current price - the previous price. I substituted that with Rate of Change. I hope it helps, Andre. Best as all 3 indicators used on 3 timeframes at once, ie 1m 5m 1H. Here is an example of a script showing a multi-time frame of TSI. There are 2 ways this can be used 1. Enter long when Blue line crosses up the Red 2. Exit long when Green line crosses the blue or 1. Exit long when Blue line crosses back down below the Red.
TSI is a "double smoothed" indicator. It is used just like RSI. Overbought and oversold levels differ. They are marked by the indicator. BTCe shows only 3 oversold conditions so far, the last one being just days ago. Ergodic Oscillator indicator script. Script based on True Strength Index TSI and RSI A technical momentum indicator that helps traders determine overbought and oversold conditions of a security by incorporating the short-term purchasing momentum of the market with the lagging benefits of moving averages.
Generally a day exponential moving average EMA is applied to the difference between two Chart based on True Strength Indicator It was improved to show same information as Squeeze Momentum Indicator by LazyBear, but it seems to have better and quicker response to changes and was tested on Bitcoin mainly. Enjoy it! Indicators and Strategies All Scripts.
All Scripts. Indicators Only. Strategies Only. Open Sources Only. Indicator: True Strength Index. Ergodic Oscillator.Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email.
All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. The subject line of the email you send will be "Fidelity. The Momentum Oscillator is the current price divided by the price of a previous period, and the quotient is multiplied by The result is an indicator that oscillates around Values less than indicate negative momentum, or decreasing price, and vice versa.
Momentum measures the velocity of price changes as opposed to the actual price levels themselves. Technical analysis focuses on market action — specifically, volume and price. Technical analysis is only one approach to analyzing stocks.
When considering which stocks to buy or sell, you should use the approach that you're most comfortable with.True Momentum Oscillator - Day Trading & Swing Trading Indicator
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Thomas did note elsewhere that this study along with the RSI in Laguerre Time Transform study are very nuanced studies. Watch them both intently on one product like the SPY at your time frame.
See how they react. Also read everything you can in what I and others have posted in the Tutorial section, below in the suggested links, and in the Universe of Thinkscript which is in the Tutorials as well. The Universe of Thinkscript has over 2 years of practically each day's full transcript of questions and conversation directly from the ThinkScript Lounge. Sorry I can't be of more help. Nick MBFdo either one of you former noobs have an answer to switchfire 's question? Anyone else? Thomas Active member.
It's all about the set up and your stock, is it moving up with MOMO or more importantly is it moving down. I apologize if there was anything contributed appearing misleading. Good trading. Last edited: Feb 22, Thomas said:. Oh, I see, I literally took the question by the word Delta Horse rider explained it perfectly, place two TMO's on a chart as Mobius mentioned, there are instructions as to the time frames apart, and then look through the charts to see how the indicator reacts.
I will share notes on another post.