TDI Indicator Signals for Trend and Countertrend Entries

Summary

The document describes a TDI indicator displayed as a trend index line, a direction line, and a directional histogram. Its calculation uses a configurable period and applied price. The histogram indicates the favored trade direction: upward for buying and downward for selling. Line crossings, a crossing of the zero level, or a change in line direction may provide entry signals aligned with the histogram.

For a countertrend approach, the document suggests treating a line direction change against the histogram as a possible entry cue. It gives no formulas, performance results, chart examples, or rules for exits and risk controls, so the signals remain broad interpretations rather than a fully specified strategy. Traders would need to define and test the indicator’s calculations and signal behavior before relying on it.

Key ideas

• The indicator combines a trend index, a direction line, and a directional histogram.
• The calculation period and applied price are configurable.
• An upward histogram favors buying, while a downward histogram favors selling.
• Line crossings and direction changes are described as possible entries aligned with the histogram.
• A line change against the histogram may be used as a countertrend entry cue.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.