TDI Indicators – What Is Their Meaning?

What do you think of TDI indicators? 

The Traders Dynamic Index (TDI) is an interesting trading indicator. The above-mentioned indicator is based on a combination of technical analysis. 

Interestingly, the TDI indicator implements the standard RSI indicator. Let’s continue! 

As stated earlier, the TDI indicator uses the standard RSI indicator, which defines the strength of the current trend, or, if you would like, the rate of change in price. 

Interestingly, the relative strength index, or RSI, is a popular indicator. It was developed by a technical analyst J. Welles Wilder. Thanks to RSI, it is easier to evaluate the strength of the current market. 

We need to note that the moving averages algorithm is utilized to smooth the lines. Moreover, Bollinger Bands are utilized in order to estimate the amplitude of the oscillations. 

Did you know the TDI indicator can be used as a complete trading system?

Thanks to an integrated approach, the above-mentioned indicator alone can be used as an independent trading system.

Do you know how to use the TDI indicator? 

The indicator mentioned above simultaneously shows the direction as well as strength of the current trend, by which we can try to determine the right moment to enter trade positions. 

Don’t worry! You don’t have to be a financial guru in order to learn more about TDI indicators. 

Once again, the above-mentioned indicator utilizes a complex approach to the market, utilizing a number of classical indicators at the same time: the RSI, Moving Average, as well as Bollinger Bands. 

In spite of the fact that the TDI is an independent trading system, it is better to use it alongside classical tech analysis, price patterns as well as Price Action patterns. 

Classical indicators 

Let’s learn more about the Moving Average (MA) indicator. The indicator mentioned above is a popular technical indicator. 

It is a formula used to calculate the average of a market’s movements over an extended period of time in order to identify trends, which is crucial for a good forex trading strategy.

MAs are popular among traders but why? They are popular because of the indicator’s ability to gather data from a specific time period into a ‘bird’s eye view’ of recognizable patterns as well as trends.

One advantage of the indicator mentioned above is that if you want to calculate the Moving Average indicator manually, it is comparatively easy to do compared to some forex trading mathematical formulas. 

This is because the Moving Average is simply the average of a market’s price over a certain period of time. Interestingly, this also makes the Moving Average customizable. As a result, you can have the opportunity to calculate the Moving Average of any time period or any market you would like. 

Do you know how many types of MA indicators are used in forex? There are two main types. The first one is the simple moving average (SMA), and the second one is the exponential moving average (EMA). 

It is important to note that the simple moving average is just the average price over the whole time period you would like to factor in for that market. 

What is the role of the exponential moving average? As in the case of a simple moving average, it also calculates a market’s average price. However, it is more focused on the most recent price changes. 

TDI indicators and MetaTrader 

We need to note that the TDI indicator is available for MT4, MT5, as well as cTrader. 

MetaTrader 5, also known as MT5, is one of the most popular currency trading platforms. The trading platform mentioned above was released more than 10 years ago. Interestingly, it was released as an additional platform to MetaTrader 4, also known as MT4. 

Not only MT5 but MT4 is also very popular among traders. Moreover, it is even more popular compared to MT5.

Both platforms are flexible trading systems that allow for the trading of forex. Some people might think that MT5 is an updated version of MT4. However, it isn’t an updated version of MT4. 

It is a system with a different purpose. As opposed to MT4, traders have the opportunity to trade stocks, CFDs as well as futures. Both trading systems provide fundamental as well as technical analysis.