Trend Confirmation Index Indicator
Platform: MT5 Type: Oscillator Last update: December 1, 2024The Trend Confirmation Index Indicator for MT5 is able to calculate current condition of the market. Typically for oscillators it can provide areas of overbought (over 70) and oversold (below 30) price levels.
Based on the data contained in the candlesticks, this tool catches underlying properties like weak or strong trend and if it gains or looses strenght and momentum. That information can be a great addition and supply your trading strategy. However, it’s not recommented to utilize these signals standalone.
Example chart
General usage suggestions
The TCI was created to alert traders about extreme conditions and the best approach is taking advantage of that. When this setup is in place it means very high-probability of market reversal.
For example, you can attach a moving average to the chart and spot pullbacks. When it happens, and it’s confirmed by TCI extreme zone, you can consider opening a trade in agreement to the original direction. What’s more, it works like a charm with trendlines, support and resistance lines and divergences – of course it should be drawn within indicator’s window.
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