TRUE STRENGTH INDEX - TSI

Momentum-based technical indicator which determines trend direction and identifies both overbought and oversold conditions of a security by integrating the market’s short-term purchasing momentum with delays on moving averages. A 25-day exponential moving average is commonly used to the difference between two prices, then applying a 13-day EMA on the result. After smoothing the data, certain computations are done for the indicator to enclose in a range from +100 to -100, or +1 to -1.