76 Trend Detection Index (TDI)

TDI helps to detect the start of a trend.

The trend detection index (Blue line below) will signal a trend if it shows a positive value. TDI shows consolidation when values are negative. The direction indicator (red line) points the current direction of the trend.

A buy signal appears when TDI (Blue line) and direction indicator (red line) are both positive.

Trend Detection Index

Figure 9.23: Trend Detection Index