This type of indicator expresses a clear view on price and it's direction without the heavy clutter usually on charts. On it's own, it highlights some micro divergences and combined with other oscillators such as MACD and True Strength Index (TSI), it works quite well.
For example: Here is the True Strength Index indicator with the TPI indicator as it's source data feed. Notice how there is fakeout divergence on the regular TSI while the TPI backed TSI indicator seems to weed out those fake divergence signals.
- Daily Chart of EURUSD with Divergences
And then notice here how the TPI backed True Strength Index indicator likes to bounce off the close by trendlines when the regular TSI just blows right through or never even reaches them.
- Daily Chart of EURUSD with Trendlines
It's a valid point that the regular TSI has it's own plus and advantages, but the (TPI) True Price backed True Strength Index indicator has some neat features of it's own that may rarely be found in other places.
Many thanks to the person who coded this indicator.