Now that we have our MACD incorporated into our setup. Lets look at another favorite.
The Traders Dynamic Index (TDI).
Understand the Context and MACD Settings
MACD Settings
From our earlier discussions, the custom MACD settings we're using in the HA Candles+XMAv5 indicator are:
Fast EMA: 4 (EMA4Period)
Slow EMA: 13 (EMA13Period)
Signal EMA: 4 (used for smoothing the MACD line)
These settings were derived from the calculation 4*2 + 13 = 21, which is aligned with the TDI’s RSI period. The MACD is integrated into the HA Candles+XMAv5 indicator to enhance trend detection, helping you identify the start and end of trends for entry, staying in, and exiting trades.
And here is the TDI with the RSI_Period: Adjusted to match XMAv5 (4*2 + 13 = 21)
Basically the Yellow Base line in the TDI is used as the Bullish/Bearish Trend line.
But where it excels in, is when that line is Above/Below the Level 2 (50) that is important.
As long as the Yellow line stays Above the Level 2 (50) the chart is considered to be in Bullish territory and in bearish territory when the line stays Below the Level 2 (50). As well as highlighting the level with the two colored backgrounds, I have also added Text to the top-right of the sub-window.
I enclose the TDI indicator if you want to give it a try.
It is a work in progress... I am thinking of adding an alert when the Yellow Base line crosses the Level 2 (50).
One of the main reasons that I do not add alerts is when they all go off it just drives me nuts.
Best,
Xard777
Re: 🔺 MT5 XARD - Simple Trend Following Trading System
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XARD: If Carlsberg made charts... Probably the best charts in the world