Discover the R MobileTrader app<\/span><\/p>\n To install the TDI to the popular MetaTrader 4<\/a>, copy the file with the indicator to the Indicators folder: open the Main Menu, proceed to Files\/Open data catalog\/MQL 4\/Indicators, copy the file and restart the terminal.<\/p>\n\n\n\n The TDI will appear in the folder with the user indicators, and you will be able to add it to the chart via Insert\/Indicators\/User\/Traders Dynamic Index. Alternatively, left-click the TDI in the Navigate window and drag it to the chart of your instrument.<\/p>\n\n\n\n In the set-up window, you may change the following parameters:<\/p>\n\n\n\n 0 - Close<\/em> 0 - Simple<\/em> The TDI works well with the default settings. You may, however, change them at any time and test on history, choosing those that suit you.<\/p>\n\n\n\n Apart from market analysis, the TDI generates the following trading signals.<\/p>\n\n\n\n The crossing of the green and red lines gives signals for short-term trading. The cross rather often, so we need to use stronger signals, which are crossings in the overbought\/oversold areas.<\/p>\n\n\n\n If the fast green line crosses the signal red line from below, it is a signal to buy; if vice versa, it crosses the red line from above, this is a signal to sell. Entering the market, place the Stop Loss<\/a> behind the nearest local high\/low. Try to take the profit at the channel borders (the blue lines) or an inversed crossing of the green and red lines.<\/p>\n\n\n\n The crossing of the red and yellow lines gives a more trustworthy long-term signal.<\/p>\n\n\n\n When the signal red line crosses the yellow one from below, it means the bulls<\/a> are ready to attack and signals to buy. And vice versa: if the red line crosses the yellow one from above, it means the market is bearish and signals to sell. The SL is placed behind the local high\/low; take the profit at the important support\/resistance levels.<\/p>\n\n\n\n Another trading signal emerges when the yellow indicator line crosses levels 32, 50, or 68. This is a rarer long-term trading signal, especially if it appears on longer timeframes.<\/p>\n\n\n\n The central axis of the TDI is level 50. If the yellow line crosses it from below, this is a signal to buy; if it crosses the level from above, this is a signal to sell. To make the signal realization more probable, use it alongside the breakaways of the support\/resistance levels or lines, the formation of new price patterns<\/a>, etc.<\/p>\n\n\n\n An escape from the overbought\/oversold areas is the strongest long-term signal. If the yellow line e[its the overbought area and crosses level 68 from above, it is a signal to sell. When the yellow line exits the oversold area, a signal to buy forms, confirmed by the crossing of level 32 from below. Put the SL behind the local extremes and take the profit when the inverted long-term signals appear.<\/p>\n\n\n\n The TDI indicator uses a complex approach to the market, using several classical indicators at once: the RSI, Moving Average<\/a>, and Bollinger Bands. Regardless of the TDI being an independent trading system, to make the signals more reliable, I recommend using it alongside classical tech analysis<\/a>, price patterns<\/a>, and Price Action patterns<\/a>.<\/p>\n\n\n\n![\"mobiletrader\"](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/09\/mt-mobile.png\")
\n <\/div>\n ![](\"https:\/\/roboforex.com\/blog\/wp-content\/themes\/robo-blog-2021\/images\/footer\/google-play-en.svg\")
<\/a>\n\n ![](\"https:\/\/roboforex.com\/blog\/wp-content\/themes\/robo-blog-2021\/images\/footer\/app-store-en.svg\")
<\/a>\n <\/div>\n <\/div>\n ![\"mobiletrader\"](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/09\/mt-desktop.png\")
\n <\/div>\n <\/div>\n\n\n\n<\/span>Installing and setting up the indicator<\/span><\/h2>\n\n\n\n
\n
1 - Open<\/em>
2 - High<\/em> (of the candlestick)
3 - Low<\/em> (of the candlestick)
4 - Median Price<\/em> (H+L\/2, the median price of the high and low)
5 – Typical Price<\/em> (H+L+C<\/a>\/3, the median price of the high, low, and close)
6 – Weighted Close<\/em> (H+L+C+C\/4)<\/p>\n\n\n\n\n
1 - Exponential<\/em>
2 - Smoothed<\/em>
3 - Linear Weighted<\/em><\/p>\n\n\n\n\n
![\"Traders](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2020\/05\/tdi-settings-en-1003x630.png\")
<\/a>![\"partner-programme\"](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/09\/copyfx1-mobile.png\")
\n <\/div>\n Start Investing<\/a>\n <\/div>\n ![\"partner-programme\"](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/09\/copyfx1-desktop.png\")
\n <\/div>\n <\/div>\n\n\n\n<\/span>Trading signals of the TDI<\/span><\/h2>\n\n\n\n
<\/span>The crossing of the green and red lines<\/span><\/h3>\n\n\n\n
![\"Crossing](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2020\/05\/tdi-green-red-940x630.png\")
<\/a><\/span>The crossing of the red and yellow lines<\/span><\/h3>\n\n\n\n
![\"Crossing](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2020\/05\/tdi-red-yellow-1012x630.png\")
<\/a>![\"partner-programme\"](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/09\/copyfx-mobile.png\")
\n <\/div>\n Start Investing<\/a>\n <\/div>\n ![\"partner-programme\"](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/09\/copyfx-desktop.png\")
\n <\/div>\n <\/div>\n\n\n\n<\/span>The crossing of levels 32, 50, 68 by the yellow line<\/span><\/h3>\n\n\n\n
![\"Crossing](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2020\/05\/tdi-yellow-50-944x630.png\")
<\/a>![\"Yellow](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2020\/05\/tdi-yellow-zones-1017x630.png\")
<\/a><\/span>Bottom line<\/span><\/h2>\n\n\n\n
<\/span>Description of the Traders Dynamic Index<\/span><\/h2>\n\n\n\nThe Traders Dynamic Index<\/strong> (TDI<\/strong>) indicator was designed by Dean Malone for assessing the market state and finding trade signals<\/a>. The TDI is a complex indicator as long as it is based on three other popular indicators<\/a>: the RSI<\/a>, Moving Average<\/a>, and Bollinger Bands<\/a>.<\/p>\n\n\n\nThe RSI<\/a> helps to find out whether the current trade is \"overheated\". The RSI lines are smoothed out by the Moving Averages. The Bollinger Bands<\/a> help to assess the oscillation amplitude of the price and the direction of the trend. Thanks to being complex, the TDI may be used as a separate trading system.<\/p>\n\n\n\nThe TDI is drawn in a window below the price chart and consists of five lines: two RSI lines and three Bollinger Bands. The green RSI line is called fast, the red one is signal - it is calculated based on a longer averaging period. The RSI lines show the strength and volatility<\/a> of the market. When they cross, they give short-term TDI signals.<\/p>\n\n\n\nTwo of the Bollinger Bands are blue, they constitute a trading channel; the yellow line is called the middle, or main, line. The central axis of the indicator is level 50; levels 32 and 68 are also marked. The area above 68 is the overbought zone and the area below 32 is the oversold zone, as in the classical RSI.<\/p>\n\n\n\n
Levels 68 and 32 help to define market reversals. If the yellow line crosses level 32 downwards, a local low forms in the market. A subsequent breakaway of level 32 upwards signals a reversal or the beginning of an ascending correction. If the yellow line rises above 68, a local high forms in the market. A breakaway of this level downwards signals a reversal or the beginning of a descending correction.<\/p>\n\n\n\n![\"Traders](\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2020\/05\/tdi-1006x630.png\")
<\/a>Traders Dynamic Index (TDI) indicator<\/figcaption><\/figure>\n\n\n\n
The RSI<\/a> helps to find out whether the current trade is \"overheated\". The RSI lines are smoothed out by the Moving Averages. The Bollinger Bands<\/a> help to assess the oscillation amplitude of the price and the direction of the trend. Thanks to being complex, the TDI may be used as a separate trading system.<\/p>\n\n\n\n The TDI is drawn in a window below the price chart and consists of five lines: two RSI lines and three Bollinger Bands. The green RSI line is called fast, the red one is signal - it is calculated based on a longer averaging period. The RSI lines show the strength and volatility<\/a> of the market. When they cross, they give short-term TDI signals.<\/p>\n\n\n\n Two of the Bollinger Bands are blue, they constitute a trading channel; the yellow line is called the middle, or main, line. The central axis of the indicator is level 50; levels 32 and 68 are also marked. The area above 68 is the overbought zone and the area below 32 is the oversold zone, as in the classical RSI.<\/p>\n\n\n\n Levels 68 and 32 help to define market reversals. If the yellow line crosses level 32 downwards, a local low forms in the market. A subsequent breakaway of level 32 upwards signals a reversal or the beginning of an ascending correction. If the yellow line rises above 68, a local high forms in the market. A breakaway of this level downwards signals a reversal or the beginning of a descending correction.<\/p>\n\n\n\n<\/a>