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Advanced TDI Breakout Trading Strategy

Amandeep Sonewane | Apr. 24, 2019
Advanced TDI Breakout Trading Strategy

You can now download the Advanced TDI Breakout Trading Strategy for free on AtoZ Markets indicators gallery. The Traders Dynamic Index (TDI) indicator is one of the most commonly used custom technical indicators among forex traders. The indicator puts in a lot of information into one indicator. It has a Bollinger Band like feature which allows traders to identify overbought and oversold market scenarios on a dynamically moving line, which also acts as a support or resistance, it is plotted on a fixed range, allowing for an overbought and oversold market condition to be identified based on that range. It also has an RSI line which mirrors the price movement, and it has a signal line derived from an MA which acts as a crossover signal. All these features make the TDI one of the most complete technical indicator available to forex traders.

Advanced TDI Breakout Trading Strategy works well on any timeframes and currency pairs.

How to trade with Advanced TDI Breakout Trading Strategy?

This forex trading strategy is a combination of a TDI indicator based entry signal and a breakout or breakdown from a support or resistance. Moreover, this strategy should have a higher probability of success because it is a combination of both a very powerful indicator and a commonly traded price action strategy.

To filter trades further and to make identification of the direction of the market easier, add the 200 Exponential Moving Average (EMA). If the price is above the 200 EMA, only long trade setups will be taken into consideration.

Buy (Long) Trade Setup

Entry

  • Price should be above the 200 EMA (brown)
  • A resistance line should be identifiable as price retraces down (green)
  • Price should break and close above the resistance line
  • TDI: the RSI line (green) should cross above the Signal line (red)
  • Enter a buy market order at the close of the candle with the confluence of the above rules

Stop Loss

Set the stop loss at the swing low below the entry candle

Take Profit

Set the take profit at 1.5x the risk on the stop loss

Sell (Short) Trade Setup

Entry

  • Price should be below the 200 EMA (brown)
  • A support line should be identifiable as price retraces up (green)
  • Price should break and close below the resistance line
  • TDI: the RSI line (green) should cross below the Signal line (red)
  • Enter a sell market order at the close of the candle with the confluence of the above rules

Stop Loss

Set the stop loss at the swing high above the entry candle

Take Profit

Set the take profit at 1.5x the risk on the stop loss

How to download and install an indicator?

In order to install the indicator on your MT4 platform, you need to follow these steps:

  1. Click on “Download Indicator” button located at the top right corner of the screen.
  2. Save the file to your computer.
  3. Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
  4. Restart your Metatrader platform.
  5. Navigate to “Indicators.”
  6. And select “Advanced TDI Breakout Trading Strategy” template to apply it on the chart.

Note: This indicator was developed by Tim Morris. AtoZ Markets does not carry any copyrights over this trading tool.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.