This indicator is a personal implementation of the famous Traders Dynamic Index, which uses RSI, moving averages, and volatility bands to find trends, reversals, and price exhaustion. It is suitable for scalping, day trading, and swing trading and aims to provide a full picture of the current market conditions.
For position trading
- Long if the Green line falls below the lower band
- Short if the Green line shoots above the upper band
- Confirm optional with the native oversold/overbought levels of the oscillator used
- Long if the blue line crosses the red line upwards, after leaving the deviation bands
- Short if the blue line crosses the red line downwards, after leaving the deviation bands
For day trading
- Long if the blue line crosses the red line upwards and is above the yellow line
- Short if the blue line crosses the red line downwards and it below the yellow line
For swing trading
- Long if the blue is above both red and yellow lines, however only if all the lines are below the 50 level.
- Short if the blue line is below both red and yellow lines, however only if all the lines are above the 50 level.
Optionally, you can use higher timeframes to discard or confirm trades and get better timing.
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