[blackcat] L1 Trend Detection Index (TDI)

3 thg 9, 2021

Level: 1

Background

The trend detection index (TDI), which can be used to help detect when a trend has begun and when it has come to an end.

Function

The Trend Detection Index (TDI) is used to identify when a trend has started and when it ends. The TDI can be used as a stand-alone indicator or combined with others; It will work well when it comes to spotting the beginning of trends. However, this does not mean that its signals are absolutely accurate.


Inputs

Price --> Price source as input.
Length --> Length input can be adjusted to tune TDI performance.

Key Signal

MktPos --> 1 for long and -1 for short

Remarks

This is a Level 1 free but closed source indicator.

Feedbacks are appreciated.

18 thg 4

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OVERVIEW

The **TradingView** indicator *[blackcat]* **L1 Trend Detection Index (TDI)** 📈 helps traders identify trends in financial markets by calculating a proprietary index based on price momentum and sums. It provides clear visual signals for market positions, making it easier to spot potential buy or sell opportunities. The script uses advanced mathematical calculations to determine the trend detection level and plots the results in an easy-to-read format. Ideal for both novice and experienced traders looking to enhance their technical analysis toolkit.

FEATURES

- Calculates the Trend Detection Index (TDI) using customizable inputs.
- Plots market positions with distinct colors for bullish and bearish trends.
- Includes horizontal reference lines for quick visual cues.
- Supports up to 5000 bars back for historical data analysis.
- Allows customization of price sources and calculation lengths.

HOW TO USE

1. Add the indicator to your TradingView chart.
2. Customize the **price_source** and **length** parameters as needed:
* Price Source: Select from available options like Close, Open, High, Low, etc.
* Length: Set the period over which to calculate the TDI.
3. Observe the plotted area:
* Yellow indicates a bullish trend.
* Fuchsia indicates a bearish trend.
4. Use the horizontal reference lines (-1, 0, 1) for additional context.

LIMITATIONS

- The indicator may not perform well in highly volatile or sideways markets.
- Users should combine this indicator with other forms of analysis for better decision-making.
- Historical performance does not guarantee future results.

NOTES

- Ensure you understand the underlying mathematics before relying solely on this indicator.
- Regularly review and update the parameters to adapt to changing market conditions.
- Backtest thoroughly before applying strategies derived from this indicator in live trading.