It uses the Relative Strength Index, Moving Averages and Bollinger Bands. These indicators provide traders with signals and give a clear picture of the market’s movement.
MT4 TDI indicator – free download is available in a separate window. It consists of blue and red lines. The blue line, also known as the fast line, is used to indicate market strength and volatility. The red line is calculated over a longer period of time and is known as the signal. These two lines represent market strength and volatility. When these two lines cross, the investor gets a trading signal.
The TDI indicator comes with three Bollinger bands in addition to the two RSI indicators. The area between 68-32 is marked by two blue lines. The yellow is the median line, which is the middle line. the area above 68 is considered overbought. However, the area below 32 is considered oversold.
TDI Trading Signals
Here’s the big question: how do you use the TDI indicator to get trading signals? You should wait until the red line and the blue line intersect. When the blue line crosses the red line below, it is a buy signal. If it crosses the red line from above, it is a sign of a sell signal.
To get a stronger signal, it is prudent to use the yellow line. A yellow line crossing the red line below is a sign of a strong bull market. Therefore, investors should buy. The red line should cross the yellow line at the top. This is a bearish signal and you should establish a short position.
The indicator will also indicate a market reversal when the yellow line crosses the 50 and 32 levels.
Conclusion
The Trader’s Dynamic Indicator can be used to identify buy and sell signals. You just need to wait for the line to cross and then enter your position. The indicator comes from the RSI and moving averages. You can use this indicator as a standalone strategy. It is a good idea to combine this indicator with other strategies to achieve better trade entry.
