TSI Strength Meter vs USD with divergence

2021년 3월 9일

This indicator consists of two lines. One is a gray line (USD) and the asset indicator is green or red.

The basis of this indicator is the true strength indicator (TSI) with parameters 5,15. Both line sets are based on a TSI (5,15).
The lookback period is for new highs / new lows. Default value is 200 periods.

GREEN/RED LINE
The first that is green and red is whatever you choose to display ( BTC in this case).
The green and red lines indicate going up or going down.


GRAY LINE
The gray line is the US Dollar . So everything is relative to that by default.

ZERO LINE CROSSES
These are momentum shifts. If you see a crossover of both around the zero line, its a good indication there is a change in momentum and a reversal of trend.


NEW HIGHS NEW LOWS
There are 4 new colors added to this indicator. For the asset you are viewing, a lime color means new highs within the lookback period. A new low is indicated by a yellow line color.

The new lows for the USD are white for new lows within the lookback period and blue line for the new highs.

DIVERGENCE

You can also spot divergences easily. For example, if a lime color is seen on the indicator line, that means "new high" but if it occurs below the last "new high" it means the asset is going up to new highs but the indicator is showing us that the readings are below the previous new highs, indicating a negative divergence.

The same goes for the yellow colored lines. higher yellows mean positive divergence.

And with the US Dollar , blue lines dropping means a negative divergence in the US Dollar , while white lines moving up means a positive dollar divergence.

INTERPRETATION

Examples:
If you see a green and sometimes red line of the asset indicator and a gray line that drops below the zero line; it may mean the asset is rising and the trend is up.

If you see a green and red line below the zero line and with a gray line above the zero line , it indicates there is a negative trend. If you suddenly see blue lines on the USD, this means its hitting new lows. If these blue lines then start to slowly move downwards; then we have a positive divergence. If that were to be followed by the green line crossing the zero line, its a pretty good be that the trend is changing and its a very good buying oportunity.