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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. It determines a relationship between the current market volatility and the current relative strength of the market. In a nutshell one could say that the optimal is a market which is volatile yet strong.
Traders use the TDI in different ways and we advise users to experiment with this versatile indicator. Nevertheless, the most popular way of using this indicator is to use it as a classic break-out indicator.
This example shows a buy signal. This means the following criteria are met:
For a short sell signal, the reverse logic applies.
Open the chart of an instrument. In the WHS Proposals folder, select the Traders Dynamic Index.