the red/green arrows at the bottom indicate price direction and the red/green x indicate a bullish or bearish crossover (see below for full instructions).
used with the stoch to confirm direction and movement you have an 123 step guide = 1 - stoch curl up/down 2 - price direction up/down 3 - trend direction up/down
personally i find this best on the higher tf 4h upwards as lower can give too many signals.
thanks to lazy bear for the initial scripting and the below instructions on TDI:
Traders Dynamic Index =============================================================== This hybrid indicator helps to decipher and monitor market conditions related to trend direction, market strength, and market volatility .
TDI has the following components: * Green line = RSI Price line * Red line = Trade Signal line * Blue lines = Volatility Bands * Orange 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 = Orange line trends up and down generally between the lines 32 & 68. Watch for Orange line to bounces off these lines for market reversal. Trade long when price is above the Orange 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 & Orange lines Short = Red over Green & Orange lines * Moderate - Long = Green over Red, Orange, & 50 lines Short= Red over Green, Green below Orange & 50 line
Exit conditions: ---------------------------------------------------- If Green crosses either Blue lines, consider exiting when the Green line crosses back over the Blue line.
* Long = Green crosses below Red * Short = Green crosses above Red
example, the weekly showed a bearish trend cross on 25th December 2017, this would of kept you in short all year with an 85% yield 1:1
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example. on the daily the price was heading down and the trend crossed bullish, the stoch divergence indicated the trade was good. a long would of returned 33% profit 1:1
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example. on the 4h stoch curl down confirmed the end of the uptrend and followed by a bearish cross however stoch has landed and there is a move upwards possible. the orange line bouncing off the yellow line indicates that although price action may cross positively the trend will most likely continue down indicating this is a corrective wave B or X.
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