The William Blau True Strength Index indicator shows the William Blau true strength index.
It has seven input parameters:
- Period - calculation period;
- Applied price - the calculation price;
- First smoothing period - the initial smoothin period;
- Second smoothing period - the secondary smoothing period;
- Third smoothing period - the resulting smoothing period;
- Upper level - the overbought level;
- Lower level - the oversold level.
Based on the True Strength Index calculation formula described in the MQL5: Create your own indicator article and on William Blau's postulate of three-period smoothing, the indicator calculation formula is as follows:
TSI(Price,Period,fs,ss,ts) = 100 * EMA(EMA(EMA( mtm(Price,Period) ,fs),ss),ts) / EMA(EMA(EMA( |mtm(Price,Period)| ,fs),ss),ts)
mtm(Price,Period) = Price[i] - Price[i-Period+1], fs - First smoothing period, ss - Second smoothing period, ts - Third smoothing period