How to Use True Strength Index Indicator to Trade Crypto

The true strength index (TSI) is often overshadowed by moving average convergence divergence (MACD) and relative strength index (RSI). But the truth tells that TSI can be incredibly reliable to determine the trend strength and direction. It is beneficial for traders to initiate new positions or determine when an existing trend is about to end to close positions. Overall, the TSI indicator can be used on all time frame charts and is especially useful in crypto because the trends can last a long time. 

This guide will walk you through step-by-step to apply the TSI indicator and how to interpret the trade signals based on the overbought and oversold levels and crossovers.

What is the True Strength Index?        

The true strength index (TSI) is a momentum oscillator used in technical analysis to determine the strength and momentum of a market’s trend. TSI helps determine if a market is changing trends and if a market is overbought or oversold.