TDI Trend Filtered
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TDI Trend Filtered - Revived Classic with Trend Filter
Description
The Traders Dynamic Index (TDI) is a legendary indicator developed by trader Dean Malone, used by professionals in financial markets for decades. It is a powerful multi-functional tool that combines the elements of RSI, moving averages, and Bollinger Bands volatility.
Unfairly forgotten in recent years, this indicator is getting a second wind in our modernized version. We have added a Trend Filter based on a Moving Average, which allows you to filter out counter-trend signals and significantly increase the accuracy of your entries.
** What's New in This Version:**
Trend Filter — The ability to enable/disable signal filtering using a heavy MA (default period 200).
Non-Repainting Arrow Signals — All signals appear strictly after the bar closes.
Optimized Algorithm — Uses sliding window sums for high performance, even on massive historical data.
Visual Breakout Cloud — Clear highlighting of volatility breakout zones.
Flexible Customization — All parameters are adaptable to your specific trading style.
Non-Repainting Arrow Signals — All signals appear strictly after the bar closes.
Optimized Algorithm — Uses sliding window sums for high performance, even on massive historical data.
Visual Breakout Cloud — Clear highlighting of volatility breakout zones.
Flexible Customization — All parameters are adaptable to your specific trading style.
Indicator Components:
1. Green Line (RSI Price Line)
The fast line is the average RSI value over 2 periods. It shows the current price momentum.
2. Red Line (Trade Signal Line)
The slow line is the SMA of the RSI over 7 periods. It smooths out noise and shows the short-term trend direction.
3. Yellow Line (Market Base Line)
The baseline is the SMA of the RSI over the volatility period (default 34). It displays the medium-term market equilibrium.
4. Gray Dotted Lines (Upper/Lower Bands)
Volatility bands are calculated as the Yellow Line ± the standard deviation multiplier. They show extreme overbought/oversold levels.
5. Cyan Fill (Breakout Cloud)
Visual highlighting of zones where the Green Line breaks out of the volatility bands.
6. Arrow Signals
- Red Down Arrow — SELL signal (Green line crosses down through the Yellow line from the overbought zone).
- Blue Up Arrow — BUY signal (Green line crosses up through the Yellow line from the oversold zone).
Signal Logic:
A BUY signal is generated when:
- The Green Line is below the Lower Band (oversold) OR below the 20 level.
- The Green Line crosses the Yellow Line from bottom to top.
- The price is ABOVE the filtering MA (if the filter is enabled).
A SELL signal is generated when:
- The Green Line is above the Upper Band (overbought) OR above the 80 level.
- The Green Line crosses the Yellow Line from top to bottom.
- The price is BELOW the filtering MA (if the filter is enabled).
Indicator Parameters:
Main Settings:
InpRSI_Period (5)
RSI calculation period. Lower values make the indicator more sensitive; higher values make it smoother.
RSI calculation period. Lower values make the indicator more sensitive; higher values make it smoother.
InpVolatility_Band (34)
Period for calculating the Yellow Line and volatility bands. The standard value of 34 provides a balance between sensitivity and reliability.
Period for calculating the Yellow Line and volatility bands. The standard value of 34 provides a balance between sensitivity and reliability.
InpVolatility_Multiplier (1.6185)
Multiplier for calculating the volatility channel width. The value 1.6185 (Fibonacci number) is optimal for most markets. Increasing it widens the channel; decreasing it narrows it.
Multiplier for calculating the volatility channel width. The value 1.6185 (Fibonacci number) is optimal for most markets. Increasing it widens the channel; decreasing it narrows it.
InpLevelHigh (80)
Upper overbought level. When the Green Line is above this level, the market is considered overbought.
Upper overbought level. When the Green Line is above this level, the market is considered overbought.
InpLevelLow (20)
Lower oversold level. When the Green Line is below this level, the market is considered oversold.
Lower oversold level. When the Green Line is below this level, the market is considered oversold.
Trend Filter Settings:
InpUseTrendFilter (true)
Enable/disable the Moving Average trend filter.
Enable/disable the Moving Average trend filter.
- true — signals appear only in the trend direction (recommended).
- false — all TDI signals are shown (classic mode).
InpMA_Period (200)
Period of the Moving Average for trend filtering.
Period of the Moving Average for trend filtering.
- Price above MA = Uptrend (only BUY signals allowed).
- Price below MA = Downtrend (only SELL signals allowed).
InpMA_Method (MODE_SMA)
Averaging method for the filtering MA:
Averaging method for the filtering MA:
- MODE_SMA — Simple Moving Average.
- MODE_EMA — Exponential (more sensitive).
- MODE_SMMA — Smoothed.
- MODE_LWMA — Linear Weighted.
Usage Recommendations:
Timeframes:
- Optimal: H1, H4, D1.
- Acceptable: M15, M30 (requires finer tuning).
- Not recommended: M1, M5 (too many false signals).
Trading Strategies:
1. Classic Trend Trading (with filter)
- Enable the trend filter ( InpUseTrendFilter = true ).
- Trade only in the direction of the MA 200.
- Works excellently in trending markets.
2. Counter-Trend Trading (without filter)
- Disable the filter ( InpUseTrendFilter = false ).
- Catch reversals from extremes.
- Requires experience and strict risk management.
3. Breakout Scalping
- Reduce InpVolatility_Band to 20-25.
- Trade the cyan fill (volatility breakout).
- Works best during active trading sessions.
Advantages:
✔ 3-in-1 — Combines an oscillator, a trend indicator, and volatility.
✔ Reliability — Proven over decades across different markets.
✔ Flexibility — Suitable for any trading style.
✔ No Repainting — All signals are fixed after the bar closes.
✔ High Performance — Optimized code that won't slow down your terminal.
✔ Visual Clarity — All zones and signals are clearly visible.
✔ Reliability — Proven over decades across different markets.
✔ Flexibility — Suitable for any trading style.
✔ No Repainting — All signals are fixed after the bar closes.
✔ High Performance — Optimized code that won't slow down your terminal.
✔ Visual Clarity — All zones and signals are clearly visible.
Important Notes:
- This indicator is an auxiliary tool and should not be used in isolation.
- Always use Stop Losses and proper risk management.
- Test the settings on a demo account before trading with real money.
- In ranging markets with the filter enabled, there may be fewer signals — this is normal and intended.
- The indicator does not repaint — all signals remain fixed on the history.
History of the Indicator:
The TDI was developed in the 1990s by professional trader Dean Malone and quickly became popular among institutional traders. For a long time, it was considered a "secret weapon" of professionals and was rarely discussed in open sources.
In the era of simple indicators, TDI was unfairly forgotten, but it is now experiencing a renaissance due to its complexity and reliability. Our version preserves all the advantages of the classic TDI while adding modern filtering and optimization features.
** Support:**
If you have any questions or suggestions for improving the indicator, please leave a comment. We value your feedback and are constantly working to improve our product!
Happy Trading!
