TS100 Indicator

#momentum #oscillator #dual-smoothing 

TS100 is a momentum oscillator that tells you whether short-term momentum is stronger or weaker than long-term momentum.. 

TS100 is a momentum oscillator that oscillates around a centerline of 50. It uses a dual-smoothing approach: one fast smoothing layer and one slow smoothing layer applied to price changes. The fast layer captures recent momentum. The slow layer captures longer-term momentum. The ratio between them determines whether the oscillator is above or below 50. When fast momentum exceeds slow momentum, the line rises above 50 — bullish. When slow momentum exceeds fast momentum, the line falls below 50 — bearish. 

Default periods: 14 (fast) and 26 (slow) 

How to read it: 

A single line that oscillates around 50. Above 50 means short-term momentum is ahead of the longer-term trend — the move is accelerating. Below 50 means short-term momentum is lagging — the move is losing speed. The line is smooth and stays in place during real trends, then flips decisively when momentum genuinely changes. 

Useful readings: 

– Above 50 — bullish momentum zone. The trend is gaining speed. 

– Below 50 — bearish momentum zone. The trend is losing speed. 

– Crossing above 50 — momentum has shifted from weak to strong. Trend change may be starting. 

– Crossing below 50 — momentum has shifted from strong to weak. Trend change may be starting. 

– Steep rise above 50 — momentum is accelerating fast. Strong trend. 

– Steep fall below 50 — momentum is deteriorating fast. Strong reversal. 

– Price makes new high but TS100 doesn’t — momentum is fading despite the price move. Trend exhaustion. 

Use cases: 

– Trend direction: Above 50 = trend is alive. Below 50 = trend is dead. Simple filter for whether to be long or short. 

– Entry timing: Enter on the 50 cross — you’re getting in when momentum shifts, not when it’s already exhausted. 

– Divergence trading: When price and TS100 disagree, the trend is running out of steam. That’s a reversal warning. 

– Noise filtering: The dual-smoothing keeps the line from flipping back and forth in chop. When it does move, it means something. 

Objective rules: 

– Go long when TS100 crosses above 50. 

– Go short when TS100 crosses below 50. 

– Exit when it crosses back through 50 in the opposite direction. 

– Avoid trading when TS100 is flat around 50 — momentum is neutral. 

– Use divergence (price vs TS100 disagreeing) as an early exit signal. 

What makes it unique: Most momentum oscillators compare price to a single average. TS100 compares two layers of momentum against each other — fast vs slow. That double-smoothing removes the noise that makes most oscillators whipsaw. The result is a cleaner signal that stays committed during real trends and flips only when momentum genuinely changes hands. It’s momentum measurement with built-in noise filtering. 

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.