TDI with more Signals

  • updated
  • Under review


TDI is a great indicator. We could get more signals.

Could they be implemented in CP?

This hybrid indicator is developed to assist traders in their
ability to decipher and monitor market conditions related to
trend direction, market strength, and market volatility.

Even though comprehensive, the T.D.I. is easy to read and use.

Green line = RSI Price line
Red line = Trade Signal line
Blue lines = Volatility Band
Yellow line = Market Base Line

Trend Direction - Immediate and Overall
Immediate = Green over Red...price action is moving up.
Red over Green...price action is moving down.

Overall = Yellow line trends up and down generally between the
lines 32 & 68. Watch for Yellow line to bounces off
these lines for market reversal. Trade long when
price is above the Yellow line, and trade short when
price is below.

Market Strength & Volatility - Immediate and Overall
Immediate = Green Line - Strong = Steep slope up or down.
Weak = Moderate to Flat slope.

Overall = Blue Lines - When expanding, market is strong and
trending. When constricting, market is weak and
in a range. When the Blue lines are extremely tight
in a narrow range, expect an economic announcement
or other market condition to spike the market.

Entry conditions
Scalping - Long = Green over Red, Short = Red over Green
Active - Long = Green over Red & Yellow lines
Short = Red over Green & Yellow lines
Moderate - Long = Green over Red, Yellow, & 50 lines
Short= Red over Green, Green below Yellow & 50 line

Exit conditions*
Long = Green crosses below Red
Short = Green crosses above Red
* If Green crosses either Blue lines, consider exiting when
when the Green line crosses back over the Blue line.

Image 3454

The idea is obtained:


Jerome Powell

Yes I´d really support that idea to have more options for the tdi indicator 


TDI is S tier indicator

Ulises Cune

This page has several, with the names (Spanish, sorry)

TDI Cross

This is the most basic and used strategy with this indicator. When the RSI crosses the red signal line, it means that we can enter the market in the direction that the TDI points.

One way to reform this strategy is that the RSI crosses divergences, after a Sharkfin, a Squeeze or a cross with little separation between the RSI and the signal line with respect to the Market Base.

In the image above you can see an example of what the price does when this TDI Cross is made.

TDI divergences:

1) Regular divergences

In this example, we find a regular divergence. The RSI is below the Market Base. The crossing with the red signal line is the opportune entry.

2) Hidden divergences

In this example we have a hidden divergence in the indicator. Our buy signal occurs when the RSI crosses the Market Base in long positions.

TDI Sharkfin

Shark fin is when the TDI indicator, when the green RSI breaks above a certain level and also breaks the upper volatility band and then breaks below that level, a SharkFin forms that resembles the shark fin a shark.

RSI follows the price. This pattern indicates that the RSI rose and fell suddenly, which means that the price will most likely continue to fall further, so it is a good time to make a SELL.

It can also happen the other way around for PURCHASES.

As you can see in the image below, in the London session, the price takes liquidity from the upper part of the Asian session, which is called the Kill Zone, giving shape to a Sharkfin. Once it takes liquidity, it generates a high volatility in the indicator, which goes out and enters the Bollinger bands and finally emits an entry signal at the crossing of the Market Base in the direction of sales.

TDI Volatility

More than a form of entry, it is a trading tip. When the signal line and the RSI stay outside the Bollinger bands, it means that there is high price volatility. Trend entries can be executed on small pullbacks, or as a way to lengthen profits if you find yourself in the trade. The time to break out would be when the RSI and signal line re-enter the Bollinger bands.

Dean Malone, the creator of the indicator, used this volatility as a market entry signal, making good profits. Maybe you can take advantage of this, study this trading tip, and add a few more pips to your counter.

TDI Squeeze

This is my favorite strategy and the one that brings me the most benefits! When any type of divergence occurs in the indicator, the Bollinger Bands are compressed (Accumulation or Distribution of price) and RSI and signal line are very close to the Market Base. Well, when both the RSI and the signal line cross the Market Base, I already have the direction of the price and I execute my entry. You will see that after this, TDI volatility occurs and this type of operation will give you many pips.

This happens because the price accumulates positions after spending some time taking liquidity. Once triggered with these entry rules, the price will move aggressively giving you some nice quick pips and juicy profits.

TDI & Pivot Points

This is a classic and a magnificent complete strategy called Davit Pivots that you will find on this website. Knowing how to use the pivot points of the price and combine it with the signals that the TDI offers us is not wasted. I suggest you go on to read the post on the trading strategy with pivot points and get good profits from it.

Basically it's finding RS 61/78 pivot points that haven't been neutralized, a divergence in that area, TDI crossover input signal and voila! You already have a tremendous and simple strategy. Your lead would be at a next pivot point or if you want to lengthen it, on the opposite side of the 61/78.

TDI Buy & Sell Market Maker Models

Another advantage that you can get from the TDI is through the buying and selling models made by the Market Makers. You will find this system best explained by Steve Mauro in the Market Maker Method Course.

As you can see in the image, the ideal is to wait for 3 price hits counted by the Asian sessions to make your entry for price reversal or continuation. This can serve as a good guide to wait for the price at a good confluence point and operate in a Kill Zone to get the most out of it. Combine it with pivot points and divergences and all the tips above to optimize your entries and get the most out of this strategy.

TDI Range

The TDI can also be used to detect when the price is in an accumulation or distribution range. As you can see in the image, the RSI moves flat around the Bollinger Bands. It is a good time to trade Harmonic Patterns and take advantage of this price situation within this range.

TDI and Stochastic Oscillator

An indicator that goes perfectly with the TDI is the Stochastic Oscillator. I like to work with the periods 8,3,3 simple or 14,3,2. I use it to confirm divergences and entry signals. You can also combine it with the ADX indicator to see the momentum and combine it with the volatility bands to work some of the previous tips.

Andrey Khatimlianskyi
  • Under review

Hey, thanks for your ideas!

Why not to try to implement these signals like custom indicators?

I guess it is good way to improve the CP EA -- add more custom indicator blocks and make them versatile. Because we can't add all possible indicators and strategies into EA.

What do you think?

Ulises Cune

I just thought it would be nice if you could add some more signals to TDI like you have done with MACD in other versions. It was just a suggestion.

Andrey Khatimlianskyi
Quote from Ulises Cune

I just thought it would be nice if you could add some more signals to TDI like you have done with MACD in other versions. It was just a suggestion.

Thank you, Ulises! I appreciate your contribution to the project!

Unfortunately, I don't have as much time as before to improve the CP, so I'm going to implement only universal features and let users improve the EA with custom indicators or other 3rd-party modules.

So, current focus is on dynamic signal switching, money and risk-management and connections with 3rd-party modules. Hope it will work.