In 2006 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.
Basically the indicator was just a simple combination of an RSI (Green line), a Moving Average for crossovers (Red line) a Bollinger Band with a setting of 34 and a Standard Deviation of 1.6185 (Blue "Volatility Bands") and another Moving Average set to 34 (Yellow "Market Base Line") all combined into one sub window.
There have been many TDI indicators released over the past decade and one common complaint over the years was that the indicator repainted - which was true but hardly an issue if you were taking trades at the close of the candle on higher timeframes.
I used this indicator as a trading newbie eons ago and stuck with it for years. Till this day I can still use it successfully for live trend trading.
The thing we need to understand is it's not the most accurate indicator out there (not even close) but if you trade it with some effort you'll learn to love this indicator just as much as I did!
Tip: One of the easiest ways to trade the original repainting TDI is to wait for the 4 Hour TDI cross to signal, making sure the green TDI cross is on a "strong angle" and not entering straight away but zooming down into the 5 Minute chart and sitting patiently waiting for the 5 Minute chart's TDI to cross into the direction of the 4 Hour chart's TDI cross signal.
By doing this you reduce drawdown and can take pips from the market easily and reliably.
Personally I made thousands of live pips with this method and found it the most reliable way of trading with the trend without over complicating things.
Post your TDI indicators here!
- Traders Dynamic Index Alerts.mq4
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