Traders Dynamic Index: RSI Bands and Signal Averages
Summary
The document presents the components of the Traders Dynamic Index (TDI), an indicator built from the relative strength index. It calculates a central average of RSI values, surrounds it with bands based on their standard deviation, and plots additional short and longer averages of RSI. It also marks reference levels intended to help interpret the indicator’s range.
The code supplies parameter values and identifies the plotted lines, but it does not explain how to turn their crossings or positions into trade entries, exits, or risk controls. It provides no market examples, performance evidence, or testing results. The material is therefore useful as a description of an indicator’s construction, but readers would need to define and validate a trading method separately. The accompanying privacy notice concerns the source site and adds no trading guidance.
Key ideas
- The TDI begins with RSI calculated from closing prices.
- A moving average and standard-deviation bands summarize the RSI series.
- Two additional averages smooth RSI over shorter and longer periods.
- The document lists reference levels but gives no rules for acting on them.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.