Traders Dynamic Index (TDI)

The Traders Dynamic Index is a trend following momentum indicator based on the RSI. The RSI calculation itself applies slightly different settings than the standard RSI version.

Indicator Description

First, a 13 period average is used, as opposed to the standard RSI 14 period. Secondly, a smoothing period of 2 is used vs. the customary 3 bars applied to the standard RSI. Finally, the TDI applies the SMA as the basis for its calculation, not the EMA which is used for the standard RSI calculation.

The TDI indicator comes with the following parameters:

  • The Priceline, which is a SMA(2) of RSI(13)
  • The Signalline, which is a SMA(7) of RSI (13)
  • The Midband, which is a SMA(34) of RSI (13)
  • The BollingerBands around the SMA(34) using 1.62 StdDev

The following combinations may be considered as trade rules:
– go long, if Priceline > 50
– go short if Priceline < 50
– consider an exit, if Priceline is above 68 or below 32

– go long if Priceline > Signalline
– go short if Priceline < Signalline
– exit if Priceline crosses Signalline

– trendfilter long, when Priceline > Midband
– trendfilter short, when Priceline < Midband

– add to long, when Priceline > BollingerBand.Upper
– add to short, when Priceline < BollingerBand.Lower

The indicator is available for NinjaTrader 8.