YardleyRosette

3] How to use Traders Dynamic Index and Complementary Overlay

Education
FOREXCOM:EURUSD   Euro / U.S. Dollar
XtremePhaser = Thin Cyan line
HighPhaser = Thin Blue line
HighMBL = Thin Orange line

Phaser = Thick Blue line
Midline = Thick Black line
& others.

Just like the traditional use of moving averages, HighPhaser and XtremePhaser allows for higher time frame trend (by their nearness and crossover) to be seen and recognized by traders allowing them to respect market's condition to not imply what is not true and in the end 'lose it all'.
It (TDI-CO) allows of course to show support and resistance .
It also allows for support/resistance breakout to be evidenced as seen in 15 min chart with price being squeezed by Phaser (&Midline) and XtremePhaser.

How to to trade retracements: Retracements come with the expectation of a trend continuation, therefore the safest trade is to continue trend not countertrend-trading with the pullback.
Component lines aid in recognizing when the market is in a pullback as seen in image.
HighMBL overlay did not allow price to rise any higher. Phaser and HigherMBL formed a channel because of their slope downward, but the importance of their steepness is major, as it should determine how you should trade. In summary you should trade in same steepened direction as the thick blue and thin orange line, but a breakout of a flat highLine is more promising for the adept swing traders.