TDI w/ Variety RSI, Averages, & Source Types

The TDI w/ Variety RSI, Averages, & Source Types indicator is a comprehensive market analysis tool designed to help traders decipher trend direction, market strength, and volatility through a highly customizable hybrid oscillator framework. It builds upon the classic Traders Dynamic Index (TDI) by integrating numerous RSI variants, moving averages, and advanced source types to provide a more refined view of market conditions across any timeframe.

Usage

The indicator provides a multi-layered approach to market analysis using several distinct components:

• RSI Price Line (Green/Red): Represents the primary momentum of the market. Its color changes based on its relationship to the Signal Line.
• Trade Signal Line (White): A smoothed version of the RSI line used to identify potential entry and exit points.
• Volatility Band (Dark Green/Red): Acts similarly to Bollinger Bands, measuring market volatility. Expanding bands indicate a strong trending market, while constricting bands suggest a weak, ranging market.
• Market Base Line (Yellow): Represents the overall market sentiment or long-term trend.

Traders can use this tool to identify several signal types:

1. Crossover Signals: When the RSI Price Line crosses the Trade Signal Line.
2. Boundary Crosses: When the RSI Price Line interacts with the upper or lower volatility bands or the horizontal oversold/overbought levels.
3. Middle Crosses: When the RSI Price Line crosses either the Market Base Line (Yellow) or the horizontal midpoint (50 level).

Details

This version of the TDI is significantly expanded from the original concept. It incorporates:

• 7 RSI Types: Including Jurik's RSX (default), Regular RSI, Slow, Rapid, Harris, Cuttler, Ehlers Smoothed, and T3 RSI.
• 36 Moving Average Types: Used for smoothing the Price and Signal lines, ranging from standard SMAs and EMAs to advanced filters like Fractal Adaptive (FRAMA), Hull (HMA), and Zero-Lag variants.
• 33 Source Types: Beyond standard OHLC prices, it supports Heikin-Ashi (HA) and Heikin-Ashi Better (HAB) calculations with various smoothing methods (AMA, T3, Kaufman).

Settings

Source Settings

• Heikin-Ashi Better Calculation Type: Selects the smoothing method (AMA, T3, or Kaufman) for HAB sources.
• Source: Choose from 33 different price source calculations, including trend-biased and Heikin-Ashi variants.

Basic Settings

• RSI Period: The lookback period for the RSI calculation.
• RSI Type: Select the specific RSI algorithm (e.g., RSX, Regular, T3).
• RSI Price Line Period: The smoothing period for the primary RSI line.
• Signal Line MA Type: The moving average algorithm used for the RSI Price Line.
• RSI Signal Line Period: The lookback period for the secondary signal line.
• RSI Signal Line MA Type: The moving average algorithm used for the Trade Signal Line.

Volatility Band Settings

• Volatility Band Period: Lookback for the volatility (Bollinger-like) bands.
• Volatility Band Multiplier: Controls the width of the volatility bands.

Signal & UI Settings

• Signal Type: Select which crossover logic triggers the visual signals and alerts.
• Upper/Middle/Down Horizontal Boundary: Set the fixed levels for overbought, neutral, and oversold zones.
• Color Bars?: Toggle candle coloring based on indicator conditions.
• Show Signals?: Toggle the visibility of on-chart signal icons.

FAQ

How do I interpret the Volatility Bands? When the bands are tight, the market is usually in a low-volatility squeeze; a breakout is often imminent. When they expand significantly, it confirms a strong trend is underway.

What is the best RSI Type to use? While the default is set to Jurik's RSX for its reduced lag and smoothness, "Regular" is best for traditional TDI strategies, while "Ehlers Smoothed" offers a more modern alternative for noise reduction.

How can I access TDI w/ Variety RSI, Averages, & Source Types? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.