There are a couple of indicators that seem to come under the TDI initials these days. Trend Detection Index (TDI) has been noted along side the Traders Dynamic Index Metatrader Indicator. So when you are looking for a TDI indicator for your next trading system you need to make sure you find and use the correct TDI indicator.
Traders Dynamic Index indicator, is another one of those so called Russian coded indicators that you hear so much about on the forex forums. But the Trend Detection Index seems to be associated with M. H. Pee. So which one is which?
There is however very little real analytical information on TDI whichever indicator you are talking about.
- The Trend Detection Index
Most sites seem to say…”The TDI can be used as a stand-alone indicator or combined with others; it will perform well in detecting the beginning of trends.”
Its a simple two line indicator. The blue line represents the Trend Detection Index while the red line represents the Direction Indicator. For EOD trading the entries would be as follows:-
Enter long tomorrow at the open if both the TDI and direction indicator are positive after today’s close or enter short at the open if the TDI is positive and the direction indicator is negative.
Download Trend Detection Index: TDI Metatrader Indicator
- The Traders Dynamic Index
The author provided the trading information for the indicator in the indicator code, which I have replicated below.
Download Traders Dynamic Index TDI Metatrader Indicator
Traders Dynamic Index trading rules:-
This hybrid indicator is developed to assist traders in their
ability to decipher and monitor market conditions related to
trend direction, market strength, and market volatility.
Even though comprehensive, the T.D.I. is easy to read and use.
Green line = RSI Price line
Red line = Trade Signal line
Blue lines = Volatility Band
Yellow line = Market Base Line
Trend Direction – Immediate and Overall
Immediate = Green over Red…price action is moving up.
Red over Green…price action is moving down.
Overall = Yellow line trends up and down generally between the
lines 32 & 68. Watch for Yellow line to bounces off
these lines for market reversal. Trade long when
price is above the Yellow line, and trade short when
price is below.
Market Strength & Volatility – Immediate and Overall
Immediate = Green Line – Strong = Steep slope up or down.
Weak = Moderate to Flat slope.
Overall = Blue Lines – When expanding, market is strong and
trending. When constricting, market is weak and
in a range. When the Blue lines are extremely tight
in a narrow range, expect an economic announcement
or other market condition to spike the market.
Scalping – Long = Green over Red, Short = Red over Green
Active – Long = Green over Red & Yellow lines
Short = Red over Green & Yellow lines
Moderate – Long = Green over Red, Yellow, & 50 lines
Short= Red over Green, Green below Yellow & 50 line
Long = Green crosses below Red
Short = Green crosses above Red
* If Green crosses either Blue lines, consider exiting when
when the Green line crosses back over the Blue line.
IMPORTANT: The default settings are well tested and proven.
But, you can change the settings to fit your
Price & Line Type settings:
RSI Price settings
0 = Close price [DEFAULT]
1 = Open price.
2 = High price.
3 = Low price.
4 = Median price, (high+low)/2.
5 = Typical price, (high+low+close)/3.
6 = Weighted close price, (high+low+close+close)/4.
RSI Price Line & Signal Line Type settings
0 = Simple moving average [DEFAULT]
1 = Exponential moving average
2 = Smoothed moving average
3 = Linear weighted moving average