If you are someone who is totally new to trading, this is not an indicator that you might need at the very beginning. There is no denying- this indicator is a little tricky to master. But once you learn how to use the TDI or the trader’s dynamic index then you would find yourself making profits even in the volatile markets. This indicator is known to work so well because it combines the strengths of other powerful and popular indicators to help you come to a relevant conclusion.
What is the trader’s dynamic index?
To put it in simple words this one is a hybrid indicator which can revolutionize market analysis. It is one of the most dependable choices for those looking to make critical calls in a highly volatile market. This one is particularly popular with the forex traders. If you wish to combine the momentum of a trend along with the sentiments of the trader in a volatile market then this indicator would be of great help. Bitcoin Profit scam review.
It is based on the relative strength index or RSI. It is a way to combine the many lines on a graph so as to result in a better understanding of the current trend. Using this strategy you would also be able to identify how quickly the price changes occur. It is a great option to help your scalp.
Use TDI the right way
To begin with, you would need to master your skills in calculating the RSI. This indicator relies strongly on the RSI to understand the sentiments of the traders. RSI would help add inputs about the demand for the chosen asset and to understand whether it is overbought or oversold. When you use technical analysis in trading you would have heard about the importance of using more than one indicator.
This is because the gaps that one indicator leaves would be caught by the other. And each indicator would capture a different characteristic of the market. So you would get a more relevant result that is not just based on the historical data but also one that is tuned to suit the real time results. TDI is a strategy that offers precisely that. Once you have the chart for RSI, you would also be using strategies similar to the Bollinger bands. This strategy is used to gauge the market volatility.
When you have a single indicator to take trade decisions you might face overfitting issues. This is one common trouble that increases the sensitivity in the charts and might result in too many false calls. With the forex market and its inherent movements, you would need to combine the indicators to achieve a stable strategy. You would be able to come up with different types of TDI strategies.
The actual graph can be plotted easily with the help of online tools. The parameters you choose would, however, revolve around the direction of the trend, force of the trend as well as the volatility range. So this is a perfect all-in-one kind of strategy for the scalpers.