TDI Indicator Guide

TDI MT4 indicator is a technical indicator created by Dean Malone to evaluate the market condition. It became a very popular custom indicator. Moreover, the TDI MT5 indicator provides technical analysts a full picture of the existing market situation.Traders usually look to optimize their trading state by using the Metatrader indicator.  In this course, we will talk about the TDI Tradingview indicator among forex traders, we will explain how it works in MT4 to understand it well and to know how to applicate it in the right manner in your CFD and forex trading with MT5 chart.

TDI Indicator Guideline

TDI Indicator FAQ

What is TDI indicator ?

TDI Indicator is used by a lot of CFD traders to make their whole decision without looking for another trading strategy. But it is very complex since it is based on three other technical tools: relative strength index (RSI) which reflects the price movement, moving average which displays the crossover signal, and Bollinger bands which help CFDs traders to identify overbought and oversold scenarios in a dynamic moving line. This is why we call it a hybrid indicator.

In fact, it helps forex traders to make scalping, swing trading, and day trading and it provides also a complete view of the current market situation. The TDI puts a lot of data into one indicator. The three other indicators included in, therefore it measures market strength and volatility, and trend movement. Furthermore, it can help you to be very prudent, it uses sound and visual alerts.

A graphical representation of the Traders Dynamic Index Indicator

How does TDI work ?

TDI MT4 indicator appears below the price chart and displays five lines: three BB lines, an RSI line, and a moving average line.

The lines are presented as follow:

  • Two blue lines (upper and lower) corresponds to the volatile bands which are related to the BB tool.
  •  Green line corresponds to the RSI’s price line.
  • Red line corresponds to the trade signal line.
  • Yellow line corresponds to the market base line.

Let’s understand these lines more. Firstly the two blue lines of the BB tool, one above and one below present a trading channel. They increase and decrease volatility in the forex market. Secondly, the green line related to TDI Tradingview indicator named fast, gives you a picture containing the movement of the market, taking into account positive and negative expectations. Thirdly, the red line is also similar to this MT4 indicator. It presents the crossover with the other RSI indicator (the green one). Besides, it shows short-term TDI signals and gives information about the volatility and strength of the market. Finally, the yellow one is called the main or middle line it represents the overall direction of the market.

What is TDI indicator settings ?

Traders dynamic index indicator parameters can be customized, therefore you can set your own custom settings for all the parameters or you can simply use the default settings for TDI. The default settings are designated in the chart as follows:
  • RSI Price: put close price by default (0= close). It is used to calculate the RSI price. You have other choices:
  1.  Open
  2.  Highest
  3.  Lowest
  4.  Median (it is the median between most and least elevated prices, H+L/2),
  5.  Typical price (it is the median price of highest, lowest, and close, H+L+C/3),
  6.   Weighted close (H+L+C+C/4).
Keep in mind that the type of price you choose can have an impact on the functioning of this Tradingview indicator.

Indicator main setting

  • RSI Period: The default setting is 13, if you increase this value the RSI  can start to lag. Moreover, if you decrease this value, it can lead to a very sensitive TDI to stock market swings, the recommended interval is between 8 and 25.
  • Volatility band: setting by default at 34, it represents the period of the BB tool. Keep in mind that if you set this parameter to a lower level it can become sensitive.
  • RSI price line: its default value is 2, which corresponds to the period of the green line (first moving average period).
  • RSI_Price_Type: The default setting is set to simple (0= simple), it corresponds to the mode of calculation of the moving average ( the green line), and you have other choices:
  1.   Exceptional MA
  2.   Smoothed MA
  3.   Linear weighted MA
  • Trade_Signal_Line: The default is set to 7, it is the period of the second moving average of the RSI line, named slow (the red line).
  • Trade_Signal_Type: The default is MODE_SMA (0= simple), it is the type of the second moving average of RSI. It is preferable to put the same value (mode) as RSI_price_type, but you can change it to an exponential_MA to avoid lagging and to better trade.
  • UseAlerts: The default alert is set to false. You can set at it every time a signal is produced.

How to use Traders Dynamic Index indicator ?

To trade with the TDI indicator you have a complex process but effective, so you need to understand it well to better trade with it.

  • For scalping: you enter a long position when the green line is above the red line and enter short when the green line is below the red line.
  • short-term trading: You enter a long position when the green line is above the red and yellow lines, and a short position when the red line is above both the green and yellow lines.
  • For medium-term trading: the same principle as the short term trading, but there is a small change. You enter a long position when all lines are below 50 and enter short when all lines are above 50.
  • The blue volatility band shows the long-term trend strength and the increase in volatility.
  • steep changes in the green line show short-term forex market volatility.

Lines crossings and buy/sell signals

  • When the red line crosses the green line from above, it is a buy signal. And if it is the inverse, the red line crosses the green line from below, it is a sell signal.
  • When the red line crosses the yellow line from below, it is a signal to buy. And vise versa, if the red line crosses the yellow line from above, it is a signal to sell. 

    The crossing of these two lines provides a reliable long-term signal.

  • When the yellow line crosses the central axis of the TDI which is level 50 from below, it is a signal to buy and if crosses it from above it is a signal to sell.
  • When the yellow line in the overbought area crosses level 68, it is a signal to sell. But if the baseline exits the oversold area, it forms therefore a signal of buy, approved by the intersection of level 32 from below.

Download TDI indicator for MT4

TDI indicator for MT4 shows five lines each line gives different information in Metatrader 4. So you don’t need to use another indicator, because TDI MT4 compound three indicators that give you a complete picture of the stock market situation. Moreover, it generates a lot of CFDs trading signals, these signals appear when two or more lines cross between themselves. In addition, there are three intermittent axes on TDI MetaTrader 4 indicator, which are the central axis is level 50, the above axis is level 68 and the below axis is level 32. These axes are also used to show buy and sell signals when they cross with the baseline (the yellow line).

Step-by-step guide on using the TDI indicator on MT4.

The two lines in the blue color represent the volatility bands. Thus, when the distance between the upper band and the lower band contract, this is a sign that the crypto market is not volatile, and when the distance between the two bands expands, it is a sign that the coins market is very volatile.

Analyzing market volatility using the TDI indicator.

Download TDI indicator for MT5

TDI indicator is a very popular MT5 indicator and a lot of traders prefer it to other indicators. In fact, it gives them the opportunity to measure three different aspects of price:direction and volatility in one indicator. Therefore you find the TDI indicator MT5 below the price chart as shown in the graphic below. So all you need is to set your own parameters, or simply use the defaults in MetaTrader 5 and then watch the movements of the lines during the trade, to know when to buy and to sell an asset.
Tutorial on utilizing the TDI indicator on MT5.

Download TDI indicator for Tradingview

The TDI indicator in Tradingview gives a complete stock, forex, and crypto market analysis, Furthermore, it facilitates the trading, crypto and currency traders can trade easily in small time and with good quality. In addition, by using the TDI Tradingview indicator you don’t need to waste your time and stay concentrated on the chart long time, you just need to put your alert and it will send you a message on your phone or email in every signal.

Here is a picture that displays buy and sell signals generated from the Tradingview TDI indicator.

Illustration of TDI Indicator on TradingView.


TDI indicator in Metarader can change your overall trading results to a better, simply by understanding it well and knowing how to use it in MT5. Moreover, it is the most recommended MT4 indicator for different kinds of trade (scalping, swing trading, day trading). Therefore this indicator eliminates the need to use any other indicator to analyze Tradingview chart.

Key takeaways

  • TDI indicator in Metatrader is a complex indicator but very effective.
  • It compounds three Tradingview indicators: the BB, the RSI, and the moving average.
  • This MT4 indicator displays a chart with five lines, each line expresses something different.
  • The crosses of the lines show different signals in the trade.
  • You can set your own settings or simply use the default settings to meet your orders in MT5.