The TDI Indicator (Traders Dynamic Index) is a well-known trading tool created by Dean Malone. Designed to combine the strengths of the RSI, moving averages, and Bollinger Bands, the TDI offers traders a complete view of market volatility, trend behavior, and momentum shifts in a single window. The TDI Indicator for MT5 is available as a free download and displays below the price chart, making it ideal for forex traders, stock traders, and algorithmic trading strategies.
This enhanced indicator uses green and red RSI-based lines to show market strength, while a discrete histogram highlights long and short market sentiment. Thanks to its simplicity and accuracy, the TDI Indicator has become a favorite among traders seeking precise entry and exit signals.
The TDI contains two main RSI moving average lines:
Green Line (Fast Line): Represents short-term strength and momentum.
Red Line (Signal Line): A longer-period smoothed line that reflects broader market conditions.
These two lines generate actionable trading signals whenever they cross, helping traders identify potential reversals or trend continuations.
In addition to the RSI lines, the indicator includes a small histogram showing directional bias:
Green Histogram: Suggests long (buy) opportunities.
Orange Histogram: Indicates bearish (sell) pressure.
This histogram acts as a confirmation filter, ensuring traders enter trades aligned with the current momentum.
A buy signal occurs when:
The green line crosses above the red line from below.
The histogram turns green, confirming bullish pressure.
Take Profit:
At the next resistance level, or
When the green line crosses below the red line again.
A sell signal forms when:
The green line crosses below the red line from above.
The histogram turns orange, showing bearish sentiment.
Take Profit:
At the nearest support level, or
When the green line crosses above the red line.
Many traders use the blue TDI line for exits:
Buy Exit: When the blue line crosses the red line from above.
Sell Exit: When the blue line crosses the red line from below.
This approach protects profits and helps traders avoid staying in trades after momentum fades.
In the GBP/USD H1 chart example, several clean signals appear:
The green line crosses the red line from above, showing bearish entry points.
Later, the blue line crosses the red line from below, signaling an upcoming bullish shift.
A change in histogram direction further supports these entries.
Additional signals arise when the TDI’s Direction line crosses the zero level, indicating stronger momentum and trend alignment.
The Traders Dynamic Index is a powerful, all-in-one indicator capable of generating highly reliable buy and sell signals. Since it integrates RSI, moving averages, and Bollinger Bands, it can be used as a standalone system. However, combining the TDI Indicator with other tools—such as price action, support and resistance, or trend filters—can further enhance trade accuracy.
To download more advanced indicators and improve your trading toolbox, visit IndicatorForest.com.
Published:
Nov 26, 2025 02:58 AM
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