TSI fluctuates between positive and negative territory. Positive territory means that the bulls have more control over the asset. Negative territory means the bears are more in control.
When the indicator diverges from the price, the TSI may signal a weakening price trend and may reverse.
A signal line can be applied to the TSI indicator. When the TSI crosses the signal line above, it can be used as a buy signal, and when it crosses below, as a sell signal. These crossovers happen often, so use them with care.
Overbought and oversold levels depend on the traded asset.