True Strength Index (TSI) – FX Replay Guide
The TSI in FX Replay is a double-smoothed momentum oscillator that helps you confirm trend strength, spot reversals, and filter trade bias with minimal noise. It excels at identifying when momentum aligns or diverges from price action—ideal for backtesting across session windows and breakout zones.
How to Add It:
- Go to the Indicators panel in FX Replay
- Search for “True Strength Index” or “TSI”
- Apply it and configure the signal line period (commonly a 7 EMA of the TSI)
How to Use TSI in FX Replay:
Trend Confirmation:
- TSI > 0 = Bullish momentum → favor long setups
- TSI < 0 = Bearish momentum → favor short setups
- Use the zero-line as a directional bias filter
Entry Signals (Signal Line Cross):
- Bullish Entry: TSI crosses above signal line → align with session open or FVG retest
- Bearish Entry: TSI crosses below signal line → confirm with price rejection or liquidity sweep
Reversal Detection (Divergence):
- Look for TSI divergence near key structure or volume areas:
- Bullish divergence: Price makes lower lows, TSI makes higher lows
- Bearish divergence: Price makes higher highs, TSI makes lower highs
Overbought/Oversold Filters:
- TSI doesn't have strict boundaries, but values nearing +100 / -100 may signal exhaustion
- Combine with price action or volume confirmation before trading off extreme values
Pro Tip:
In FX Replay, TSI works best as a momentum confirmation filter. Use it to:
- Validate breakouts during Silver Bullet sessions
- Stay in trades longer when TSI supports the ongoing trend
- Avoid entries when TSI diverges from price, signaling potential weakness
Combine with tools like SMMA, Supertrend, or VWAP for high-confluence decisions