Parts Of The Traders Dynamic Index (Part #1)
Traders Dynamic Index
A hybrid indicator developed to indicate market conditions related to trend direction , momentum , and market volatility. An “all-in-one” indicator!
Parts Of The TDI indicator are:
1) Volatility Bands (Blue)-Last but not least, we have two blue lines, one above and one below. Those blue lines represent the volatility in the market, similar to the Bollinger Bands. They are increasing and decreasing volatility. (Have setting on chart of 32 for low and 68 for high of this band, not default)
2) 50% Line (White)- Halfway point of TDI indicator- below is bearish or sell and above is bullish or buy sediment.
3) Market Base Line (Yellow)-The yellow line is what we refer to as the overall market sentiment. It shows the overall direction of the market. The overall market has a tendency to do two things. It can turn slowly, or it can continue to go in the initial direction. This is because it’s too big and it can’t turn too quickly. It’s got to come to a gradual end.
4) RSI Price Line (Green)- The green line is similar to the RSI indicator and represents the market sentiment. It shows you how the market is moving related to positive and negative expectation.
5) Trade Signal Line (Red)-The red line is simply a crossover of the green line and can be used for entry and exit in the market.
You need to focus on market sentiment. When price and market sentiment move together, you have a higher probability for a successful trade.
A hybrid indicator developed to indicate market conditions related to trend direction , momentum , and market volatility. An “all-in-one” indicator!
Parts Of The TDI indicator are:
1) Volatility Bands (Blue)-Last but not least, we have two blue lines, one above and one below. Those blue lines represent the volatility in the market, similar to the Bollinger Bands. They are increasing and decreasing volatility. (Have setting on chart of 32 for low and 68 for high of this band, not default)
2) 50% Line (White)- Halfway point of TDI indicator- below is bearish or sell and above is bullish or buy sediment.
3) Market Base Line (Yellow)-The yellow line is what we refer to as the overall market sentiment. It shows the overall direction of the market. The overall market has a tendency to do two things. It can turn slowly, or it can continue to go in the initial direction. This is because it’s too big and it can’t turn too quickly. It’s got to come to a gradual end.
4) RSI Price Line (Green)- The green line is similar to the RSI indicator and represents the market sentiment. It shows you how the market is moving related to positive and negative expectation.
5) Trade Signal Line (Red)-The red line is simply a crossover of the green line and can be used for entry and exit in the market.
You need to focus on market sentiment. When price and market sentiment move together, you have a higher probability for a successful trade.
