Forex Traders Dynamic Index (TDI) Trend Retracement Trading Strategy

How to use “Traders Dynamic Index (TDI) Trend Retracement Strategy” – The TDI indicator’s primary purpose is to filter the markets when there is no trend. Once this is filtered and the TDI identifies the trend, the next stage of the indicator is to distinguish the price movements.

The TDI of course can be used not just to scalp but also to day or swing trade the markets.

If you independently analyze the TDI indicator, you can see that the moving averages are used to determine the trend, while the Bollinger bands detect periods of high and low volatility through the contraction and expansion of the bands.

Finally, the missing piece to the puzzle is the relative strength index or RSI indicator.

The RSI is an oscillator which is used to gauge the momentum. When you combine the information from these three indicators you can see that a powerful trading strategy can emerge.

While it is possible to trade with the three indicators separately, the information can at times be confusing. This is where the TDI comes into the picture, giving the trader a comprehensive view of the markets.

Thus, with just the signals from one indicator to go by, it also reduces the complexity.

The TDI indicator is built as an oscillator and when you add the indicator you can see in the sub-window on your MT4 platform.

• Time Frame: m5  or higher
• Currency Pairs: Any

 

• Moving Average
• Traders Dynamic Index

 

• Download “ForexWOT.Com-TDIretracementSystem” (Zip/RAR File).
• Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
• Copy the “ForexWOT.Com-TDIretracementSystem.tpl” file (template) to your Metatrader Directory …/templates /
• Start or restart your Metatrader Client.
• Select Chart and Timeframe where you want to test your forex system.
• Right-click on your trading chart and hover on “Template”.
• Move right to select “ForexWOT.Com-TDIretracementSystem” trading  system and strategy
• You will see “Forex (TDI) Trend Retracement System” is available on your Chart

 

• Moving Average:
  • Price above Moving Average lines
• Traders Dynamic Index:
  • Fast MA line (Red) > Middle band line
  • RSI line upward above the Fast MA line (Red) after retracement

 

 

• Moving Average:
  • Price below Moving Average lines
• Traders Dynamic Index:
  • Fast MA line (Red) < Middle band line
  • RSI line downward below the Fast MA line (Red) after retracement

• Initial Stop loss above or below the previous swing high or low
• Exit at the opposite conditions or profit target predetermined.