TSI XAUUSD Technical Analysis & TSI XAUUSD Signals
TSI Indicator
Developed by William Blau
TSI is a momentum indicator. The TSI is drawn by using a momentum calculation that reacts faster and is more responsive to gold trading price changes, making it a leading indicator that follows gold trading price action direction closely in the gold market.
The TSI is drawn as a blue line, the indicator also plots a signal line which is drawn as a red-line, and these 2 lines are used to generate cross over signals.
TSI also plots a histogram which shows the difference between the TSI Line & the Signal-line. This histogram crosses above or below the center lines, histogram levels above the center line shows a bullish cross-over signal, while center line levels below the center-line shows a bearish cross-over signal.
Gold Technical Analysis & Generating XAUUSD Signals
The TSI uses various methods to generate xauusd signals. This xauusd indicator can be used in the same way as the RSI to determine general xauusd trend direction of the markets. Overbought and oversold levels can also be shown using TSI. The most common methods of generating trading signals are:
Zero line Gold Trading Crossover (Histogram Gold Trading crossover not Lines XAUUSD Trading crossover )
- Buy - when the histogram crosses above the 0 a buy is generated
- Sell - when the histogram crosses below the 0 a sell is generated
XAUUSD Trading Signal line Gold Trading Crossover
- A buy is generated when TSI line crosses above the Signal Line
- A sell is generated when TSI line crosses below the Signal-line
This signal is the same as the one above & the timing corresponds to the time when the histogram cross-overs happen.
Divergence XAUUSD
Divergence is used to look for potential xauusd trend reversal point of a xauusd. Reversal divergence setups are:
Classic Gold Trading Divergence
XAUUSD Classic Bullish Divergence: Lower lows in gold price and higher lows on the indicator
XAUUSD Classic Bearish Divergence: Higher highs in gold price and lower highs on the indicator
Divergence trading can also be used in identifying potential xauusd trend continuation points in gold price action direction. The continuation divergence trading setups are:
Hidden XAUUSD Trading Divergence Setup
XAUUSD Hidden Bullish Divergence: higher lows in gold price & lower lows on the indicator
XAUUSD Hidden Bearish Divergence: lower highs in gold price & higher highs on the indicator
Oversold/Overbought Levels on Indicator
This can be used to identify overbought and over-sold conditions in gold price action movements.
- Overbought condition - levels being greater than the +25 level
- Oversold condition - levels being less than the -25 level
Trades can be generated when the TSI crosses these levels.
Buy signal - when the areas cross above -25 level a buy is generated.
Sell signal - when the areas cross below +25 level a sell is generated.
Oversold
Overbought
The overbought/oversold levels are indicated using horizontal lines drawn at the +25 & -25 levels.
