# Traders Dynamic Index

Traders Dynamic Index derives four lines from one 13-period RSI: a 2-period price line, a 7-period signal line, and Bollinger Bands on the RSI whose 34-period midline is the market base line. Crossover, midline and band-press events feed ten alerts, with classic 68/32 zones and gradient fills completing the all-in-one momentum panel.

- Indicator in the LuxAlgo Library, by LuxAlgo, published May 10, 2026.
- Access: free.
- Concepts: [Traders Dynamic Index](https://www.luxalgo.com/library/concept/traders-dynamic-index/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=gjqjg9piw9dy4se6lek6x83z
- Page: https://www.luxalgo.com/library/indicator/traders-dynamic-index/

**Traders Dynamic Index** rebuilds Dean Malone's [Traders Dynamic Index](https://www.luxalgo.com/library/concept/traders-dynamic-index/), the composite panel that reads one RSI four ways. A fast price line supplies timing, a slower signal line completes the crossover pair, and Bollinger Bands run on the RSI itself wrap momentum in a volatility envelope whose midline, the classic yellow market base line, carries the regime read. Gradient fills show which of the pair is on top and how wide the envelope sits.

## How to Trade the Traders Dynamic Index?

- **Price line crosses the signal line**: the classic TDI cue in either direction; the filtered variants demand both averages on the same side of 50 before counting the cross.
- **Market base line versus 50**: crossing above shifts the regime bullish, crossing below shifts it bearish, the filter the other reads hang from.
- **Price line pressing an outer band**: stretched momentum in that direction, while a pinching envelope marks compression that tends to precede a stronger push.

Dashed zone lines at 68 and 32 frame stretched readings, and ten alert conditions cover raw and filtered crossovers, both midline events, both regime shifts and both band presses.

## Traders Dynamic Index Settings

- **RSI Length** (default 13): lookback of the RSI every component derives from.
- **Source** (default close): series the RSI is computed on. The choice propagates to every line.
- **Price Line Length** (default 2) and **Signal Line Length** (default 7): smoothing of the fast and slow lines.
- **Bands Length** (default 34): basis of the RSI Bollinger Bands and their market base line.
- **Bands Multiplier** (default 1.6185): standard deviations between the base line and each band.
- **Overbought** (default 68) and **Oversold** (default 32): the zone lines.
- Style toggles cover the crossover fill, the bands fill and optional crossover markers.

## Frequently Asked Questions

### Is the TDI better than a plain RSI?

It is a better-organized one. Every line is a smoothed rendering of the one series a [Relative Strength Index](https://www.luxalgo.com/library/indicator/relative-strength-index/) plots raw, so the TDI adds readability and event structure rather than independent confirmation.

### Why 1.6185 standard deviations instead of 2?

It is the convention the original release established and ports preserve, a golden-ratio-flavored choice with no demonstrated statistical edge. Raising the multiplier toward 2 simply makes band presses rarer and more extreme.

### Which crossovers deserve the most weight?

The filtered ones. A price/signal cross with both averages above 50 aligns timing with a bullish tilt, and the mirror below 50 does the opposite; crosses fired while the lines braid flat around the midline are the panel's best-known noise.

## Related indicators

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- [Pretty Good Oscillator](https://www.luxalgo.com/library/indicator/pretty-good-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/pretty-good-oscillator.md
- [Gator Oscillator](https://www.luxalgo.com/library/indicator/gator-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/gator-oscillator.md
- [Wave Trend Oscillator](https://www.luxalgo.com/library/indicator/wave-trend-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/wave-trend-oscillator.md
- [Center of Gravity](https://www.luxalgo.com/library/indicator/center-of-gravity/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/center-of-gravity.md
- [QQE Weighted Oscillator](https://www.luxalgo.com/library/indicator/qqe-weighted-oscillator/) (QQE): markdown at https://www.luxalgo.com/library/indicator/qqe-weighted-oscillator.md
- [5/35 Oscillator](https://www.luxalgo.com/library/indicator/5-35-oscillator/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/5-35-oscillator.md
- [Inverse Fisher Transform](https://www.luxalgo.com/library/indicator/inverse-fisher-transform/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/inverse-fisher-transform.md

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Source: https://www.luxalgo.com/library/indicator/traders-dynamic-index/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/
