Ultimate TDI indicators thread for MT4
Posted: Fri Aug 25, 2017 11:35 pm
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.
The Original Traders Dynamic Index (2005)
Replicated below with the RSI
The Synergy Pro TDI (2012)
Replicated below with the RSI
The TDI Pro (2016)
Replicated below with the RSI
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.
- 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.
- 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.
Below are the three versions of the TDI with the official settings using the base TDI Real Time indicator.
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.