Indicators: TDI

[Automated-Trading]

TDI:

The Trend Detection Index. It has two parameters:

• Period - calculation period;
• Applied price - price used for calculations.

Possible interpretation of the indicator

• If the histogram points upwards, buying is preferred; if downwards — selling is preferred.
• The intersection of the TD Index and Direction lines, intersection of Direction and zero, as well as a change in direction can also be a signal to open a position in the direction indicated by the histogram.
• If trading implies opening of counter-trend positions (trading on rollbacks), then a change in the line direction counter to the histogram direction can serve as a signal to open a counter-trend position.

Author: Scriptor