In Technical Analysis, one of my favorite indicators in an oscillator called a true strength indicator or the TSI for short.
One of the most taught subjects in Technical Analysis is something called oscillator divergence, where price makes a lower low in a down moving market and the price oscillator doesn't make a corresponding new low. Price oscillators are many in TA, example, RSI, stochastics, etc.
Oscillator divergence is simple enough to understand, but the tricky part is looking at what oscillator works well. 90 percent of oscillators are based solely on price and also suffer from lag. At crucial times, these oscillators fail to record the divergences an astonishing amount of times.
The TSI is one of the few indicators based on a derivative of a moving average of prices and differs from traditional oscillators in its speed and accuracy of tracking price momentum. You would be amazed at how accurate and how many divergences it captures compared to traditional momentum oscillators. Take a look at it and give it a go!
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