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TDI Indicator Guide

The TDI indicator provides traders with information about trend direction, market strength, and volatility through a set of lines. It uses the RSI, volatility bands, and moving averages to analyze both immediate and overall market conditions. The indicator settings are outlined, including periods for the RSI, volatility bands, and moving averages used to generate the signal and price lines. Additional settings control whether elements like the bands and lines are displayed, and whether alerts are sent when the price line crosses other lines.

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Tshephaone Gabatsholwe
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© © All Rights Reserved
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1K views

TDI Indicator Guide

The TDI indicator provides traders with information about trend direction, market strength, and volatility through a set of lines. It uses the RSI, volatility bands, and moving averages to analyze both immediate and overall market conditions. The indicator settings are outlined, including periods for the RSI, volatility bands, and moving averages used to generate the signal and price lines. Additional settings control whether elements like the bands and lines are displayed, and whether alerts are sent when the price line crosses other lines.

Uploaded by

Tshephaone Gabatsholwe
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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The TDI indicator – overview and settings

The "TDI" (Traders Dynamic Index) indicator by Dean Malone (2006)

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.

Entry / Exit conditions


Entry conditions
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

Exit conditions*
Long = Green crosses below Red
Short = Green crosses above Red
* If Green crosses either Blue lines, consider exiting when the Green line crosses back over the Blue
line.

Indicator settings
The following refers to the settings of the indicator "TDI Red Green Alerts mod.
2015.fxdaytrader" which can be found at
http://www.forexfactory.com/showthread.php?p=7992491#post7992491

RSI_Period = 13 [DEFAULT] (other suggested periods between 8-25)


RSI_Price = 0 (Close price) [DEFAULT]

Volatility_Bands_Period = 34 [DEFAULT] (other suggested periods between 20-40)


RSI_Price_Line_Period = 2 [DEFAULT]
RSI_Price_Type = 0 (SMA) [DEFAULT]
Trade_Signal_Line_Period = 7 [DEFAULT]
Trade_Signal_Type = 0 (SMA) [DEFAULT]

IMPORTANT: The default settings are well tested and proven. But, you can change
the settings to fit your trading style. (Dean Malone)

other indicator settings and Alerts:

ShowVolatilityBands = true/false (show the volatility bands?)


ShowMarketBaseLine = true/false (show the market base line?)
ShowRsiPriceLine = true/false (show the rsi price line?)
ShowTradeSignalLine = true/false (show the trade signal line?)

RsiTradeSignalLineCrossAlerts = true/false (alert when rsi price line crosses the


trade signal line up/down?)
RsiMarketBaseLineCrossAlerts = true/false (alert when rsi price line crosses the
market base line up/down?)
RsiVolatilityBandsCrossAlerts = true/false (alert when rsi crosses the volatility bands
up/down?)

SignalCandle = 1 (alert on the current candle (0) or the previous candle (1)?)
PopupAlerts = true/false (show alert popups?)
EmailAlerts = true/false (send emails?)
PushNotificationAlerts = true/false (send pushnotifications?)
SoundAlerts = true/false (play sounds?)
SoundFileNameLong = "alert.wav" (soundfile to be played on up alerts (must
exist in the mt4 sounds-directory)
SoundFileNameShort = "alert2.wav"(soundfile to be played on down alerts (must
exist in the mt4 sounds-directory)

pls. note that SoundAlerts make only sense if you deactivate the soundalert for the
default alert-window (extras-options-events), ...

Epilogue

The explanation is taken from the tdi sourcecode, the explanation of the other settings is
added by Marc (fxdaytrader) who added the alerts and did some mods.
Indicator by Dean Malone, 2006 (www.compassFx.com), mod. by fxdaytrader
(www.ForexBaron.net) 01.2015

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