True Index

True Index
It is described as the form of technical momentum pointer which is as same as the Relative Index that helps the dealers to find out the conditions of a specific security or money that have been either oversold or over purchased. This index is generally grown by integrating the temporary buying momentum with the existing market at a specific time with the lagging advantages of moving averages. Generally, an EMA, mostly comprising of twenty five days is applied on the difference that occurs between two costs with EMA of thirteen days and then applied to the final result. This index is made to a perfect indicator with a few time lags and is generally regarded that a rise in a value depicted by the True Index shows a rise in the whole momentum of direction of cost movement shown.