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Ultimate TDI indicators thread for MT4

Jimmy, Tue Mar 12, 2019 9:17 pm

TDI Indicator for Mobile & Desktop (1).png

History

The Traders' Dynamic Index (TDI) indicator first appeared in the early 2000's. It was created by Dean Malone and was only available to Dean Malone's CompassFX subscribers.
Not long after, witty traders and coders were able to debunk the TDI and recreate it so that all traders could start using it.
The indicator was largely popularized by LazyBear from TradingView and also a dear old friend of mine from Forex Factory named Eric aka eelfranz "Big E" with his trading system called Trading Made Simple. Eric sadly passed away a few years ago but traders continue to learn and evolve their trading based off his teachings! The thread is now looked after by a good man named Emmanuel who has been continuing Big E's legacy.

In 2005 the TDI was a revolutionary indicator when it first appeared and to this day is still widely used and customized by traders and coders worldwide.

Although it looks complex, the TDI is basically a simple combination of four indicators packed into one subwindow:

  • RSI (Green line)
  • Moving Average for signals (Red line)
  • Bollinger Bands with a setting of 34 and a Standard Deviation using the Fibonacci golden ratio number of 1.6185 (Blue "Volatility Bands")
  • Moving Average set to 34 (Yellow "Market Base Line") all combined into one sub window.

There have been three official TDI indicators released over the past decade by it's original author, each one tweaked and updated as the years went by:

The Original Traders Dynamic Index (2005)
Replicated below with the RSI
TDI.png

The Synergy Pro TDI (2012)
Replicated below with the RSI
SYNERGY_PRO_TDI.png

The TDI Pro (2016)
Replicated below with the RSI
TDI_RPO.png

One common complaint over the years was that the indicator repainted - which was true and this was a major issue for backtesting as the indicator appeared to be untouchable (like all repainters) but it was hardly an issue if you were taking trades at the "Close" of the candle on higher timeframes such as the 4 Hour, Daily and Weekly charts.

Personally, I've been using this indicator and following it's development years before the first smartphone was even released.
Like many traders, there's something about this combination of indicators that form the Traders Dynamic Index which is ingenious and promising. And if used correctly, it's a gem.


Which official TDI indicator works the best?

The original TDI (2005) works the best for higher timeframes (4H, Daily, Weekly & Monthly) wether you use the original or a non-repainting version such as the TDI RT (Real Time).
For intraday trading and smaller timeframes (1 Hour and below) the TDI Pro (2016) version works the best.


Replicating each TDI for mobile and charts without the TDI installed

Standard TDI (2005)

  • Apply an RSI indicator to your mobile chart with the color set to your background's color (or "invisible" or "none") if you have that option.
    Set the period to "13", Apply it to "Close".
  • Insert a Moving Average into the RSI's indicator window and set that period to "2", "Simple", apply it to "Previous Indicator's Data" and make that line Green.
  • Insert another Moving Average indicator into the RSI's indicator window and set that period to "7", "Simple", apply it to "Previous Indicator's Data" and make that line Red.
  • Insert the Bollinger Bands indicator into the RSI's indicator window and set that to "34" with a deviation of "1.618", apply it to "First Indicator's Data" and set that line to Blue.
  • Inset one more Moving Average again into the RSI's indicator window and set it to "34", "Simple", apply it to "First Indicator's Data" and set that line to Yellow.


Synergy Pro TDI (2012)

  • Apply an RSI indicator to your mobile chart with the color set to your background's color (or "invisible" or "none") if you have that option. Set the period to "10", Apply it to "Typical HLC/3".
  • Insert a Moving Average into the RSI's indicator window and set that period to "3", "Exponential", apply it to "Previous Indicator's Data" and make that line Green.
  • Insert another Moving Average indicator into the RSI's indicator window and set that period to "7", "Simple", apply it to "Previous Indicator's Data" and make that line Red.
  • Insert the Bollinger Bands indicator into the RSI's indicator window and set that to "34" with a deviation of "1.6185", apply it to "First Indicator's Data" and set that line to Blue.
  • Inset one more Moving Average again into the RSI's indicator window and set it to "34", "Simple", apply it to "First Indicator's Data" and set that line to Yellow.


TDI Pro (2016)

  • Apply an RSI indicator to your mobile chart with the color set to your background's color (or "invisible" or "none") if you have that option. Set the period to "10", Apply it to "Typical Price HLC/3".
  • Insert a Moving Average into the RSI's indicator window and set that period to "2", "Exponential", apply it to "Previous Indicator's Data" and make that line Green.
  • Insert another Moving Average indicator into the RSI's indicator window and set that period to "7", "Simple", apply it to "Previous Indicator's Data" and make that line Red.
  • Insert the Bollinger Bands indicator into the RSI's indicator window and set that to "34" with a deviation of "1.6185", apply it to "First Indicator's Data" and set that line to Blue.
  • Inset one more Moving Average again into the RSI's indicator window and set it to "34", "Simple", apply it to "First Indicator's Data" and set that line to Yellow.


The three official TDI indicators (non-repainting) for MT4

Below are the three versions of the TDI with the official settings using the base TDI Real Time indicator.

Traders_Dynamic_Index_settings.jpg
TDI_RT.mq4
(5.76 KiB) Downloaded 4421 times

Synergy_Pro_TDI_settings.jpg
TDI_RT-Synergy_Pro.mq4
(5.74 KiB) Downloaded 3585 times

TDI_Pro_settings.jpg
TDI_RT-TDI_Pro.mq4
(5.73 KiB) Downloaded 7877 times

Coders and traders can use the posted indicators above as a base to customize and create their own versions of the TDI.
Thanks to Mrtools for checking over these indicators.

Infographic guide to the TDI

Below is an infographic guide to the Traders Dynamic Index in PDF format (also posted in parts for lower speed connections). The guide includes common techniques used to trade with it, information and a few tips.

TDI Infographic Part1.jpg
TDI Infographic Part2.jpg
TDI Infographic Part3.jpg
TDI Infographic Part4.jpg
TDI Infographic Part5.jpg
TDI Infographic Part6.jpg
TDI Infographic Part7.jpg
TDI Infographic Part8.jpg
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TDI Infographic Part10.jpg
TDI Infographic Part11.jpg
TDI Infographic Part12.jpg
TDI Infographic Part13.jpg
TDI Infographic Part14.jpg
TDI Infographic Part15.jpg
TDI Infographic Part16.jpg
TDI Infographic Part17.jpg
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