Traders Dynamic Index how to use (2024)

FAQs

Traders Dynamic Index how to use? ›

At a first glance, Traders Dynamic Index is not too easy to use, but you will get accustomed to it: For scalping, enter long when the green line is above the red line and enter short when the red line is the above green line.

The TDI Cross strategy involves monitoring the Price Line and the Trade Signal Line for potential crossovers. When the Price Line crosses above the Trade Signal Line, it generates a buy signal, indicating a possible upward trend.

The Traders Dynamic Index (TDI) is a trend following momentum indicator. The indicator is calculated using the RSI (Relative Strength Index), the RSI's moving averages and a set of volatility bands based on Bollinger Bands. The TDI indicator is a very popular technical analysis indicator.

Combined into one indicator, the TDI base line will then indicate a long/short bias when moving above/below the 50 threshold. A straightforward approach is to look for setups that align the base line trend bias. The price line crosses above/below the signal line can then be used as entry points.

Choose the underlying index you want to trade. Use your trading strategy to identify potential trends. Open your first trade. You may use risk-management tools such as stops and limits, as well as take-profit orders.

Traders Dynamic Index (TDI) is a custom MT4/MT5/cTrader indicator coded by EarnForex.com. The indicator is adapted from the earlier version by Dean Malone. Traders Dynamic Index uses RSI and MA calculations to display the current market situation from multiple points of view.

The row IDs for each or clause are stored in a worktable. Since the worktable contains only row IDs, it is called a “dynamic index.” Adaptive Server then sorts the worktable to remove the duplicate row IDs. The row IDs are used to retrieve the rows from the base tables.

Calculating The Trade Volume Index

To calculate the TVI, a trader first must learn the minimum tick value (MTV) of the security. After that, the price change has to be computed by subtracting the last price from the most recent price. The trader then must determine the trend direction.

Is TDI a good indicator? ›

The Traders Dynamic Index indicator is quite effective as an independent tool for trend analysis, and is also used in conjunction with other indicators (see Using Indicators) and filters to create more reliable trading systems.

The TDI indicator is formed under the price chart and incorporates five lines, from which three represent Bollinger Bands and two RSI lines, that show the market strength and volatility.

If the price is higher than the blue line, it could continue to climb higher. If the price is below the blue line, it could keep dropping. The Tenkan Sen is an indicator of the market trend. If the red line is moving up or down, it indicates that the market is trending.

Traders Dynamic Index (TDI) MetaTrader indicator — a comprehensive but helpful indicator that uses RSI (Relative Strength Index), its moving averages, and volatility bands (based on Bollinger Bands) to offer traders a full picture of the current Forex market situation. It is available for MT4, MT5, and cTrader.

Bollinger Bands are envelopes plotted at a standard deviation level above and below a simple moving average of the price. Because the distance of the bands is based on standard deviation, they adjust to volatility swings in the underlying price. Bollinger Bands use 2 parameters, Period and Standard Deviations, StdDev.

Common strategies to trade volatility include going long puts, shorting calls, shorting straddles or strangles, ratio writing, and iron condors.