Traders Dynamic Index (TDI) indicator

 Traders Dynamic Index (TDI) indicator is a complex indicator that consists of the following indicators:

1. RSI (Relative Strength Index)
2. Moving Average  To smooth RSI
3. Bollinger Bands (BB)  Or in this case we should only refer to them as volatility bands

RSI helps us with:

1.       Trend recognition: trading in the direction of the trend

2         Overbought and oversold entry signals

MA helps us with:

1.       Smoothing RSI

Volatility bands help us with:

1.       Trend straight recognition

2      Trend direction

Pivot Points Strategy

 Pivot points can be used as entry points for new trades or as a close signal for the existing ones.

There are different types of pivot points with a different mathematical formula or simply using previous highs and lows.

How to trade Pivot points

The following scenarios work with the Traditional Pivot Points

For the Camarilla version normally R and S are closer to the price and we use a different setup.

Trading setup #1 (Not so strong trend): Open price is between R1 and S1

• Long when the price moves back above S1 after going below S1. Target will be P, R1, R2, .. levels.
• Place Stop loss at the S2 level
• 
  
• Wait for the price to go above R1 and then when it moves back below R1 again, go short.
• Profit target will be P, S1, S2 S3 levels and stop-loss above R2

Trading setup #2 (Normally very trendy bullish markets): Open price is between R1 and R2

• Buy or go long when the price moves back above R1 again after going below R1. Target will be R2,
• Place stop loss at R1
• 
  
• Wait for the price to go above S1 and then when it moves back below S1 again, sell or go short.
• Target will be  S2 levels, and the stop loss will be above P. 

Trading setup #3 ( Very trendy bearish market ): Open price is between S1 and S2

• Wait for the price to go above S1 and then when it moves back above S1 again, then go long.
• Target will be P, R1, R2 levels, and stop-loss below S2.
• Wait for the price to go below S4 and then when it moves below S2, go short.
• Place stop loss above S1. 

Trading setup #4 (High probability for a trend reversal or correction): Open price is above R2

• Buying can be risky at this level. Wait for the price to go below R2.
• As soon as the price moves below R1. go short.
• Place stop loss above R3. Target S1 , S2 or P

Scenario #5 (High probability for a trend reversal or correction): Open price is below S2

• Selling could be risky at this level as the price has opened with a big gap down.
• Wait for the price to go above S1.
• When the price moves above S1, buy
• Place a stop loss of S2. Target R1, R2, and P.

MILAN OSCILLATOR INDICATOR

The most important signals are related to the divergence.

A recap for divergence from previous lessons: 

Divergence and Hidden Divergence

Positive Divergence is bullish and occurs in a downtrend when the price action prints lower lows that are not confirmed by the oscillating indicator.

Negative Divergence is bearish and occurs in an uptrend when the price action makes higher highs that are not confirmed by the oscillating indicator.

Bullish Hidden Divergence occurs during a correction in an uptrend when the oscillator makes a higher high while the price action does not as it is in a correction or consolidation phase.

Bearish Hidden Divergence occurs during a reaction in a downtrend when the oscillator makes a lower low while the price action does not as it is in a reaction or consolidation phase.

Other Signals can be crossing 0 lines or confirmation of change of bars colour.

Acceleration Bands

 Acceleration Bands

• Serve as a trading envelope that factors

• The standard setting is 20 candles.

• They can be used across any time period as breakout indicators outside these bands.

• Acceleration Bands are plotted around a simple moving average as the midpoint, and the upper and lower bands are of equal distance from this midpoint.

• Can be used in both growth and value trading strategies to show the potential breakouts.

McGinley Dynamic Indicator

McGinley Dynamic Indicator:

• It was invented by John R. McGinley.
• It would automatically adjust itself in relation to the speed of the market.

This future can be very helpful as it is sometimes difficult to choose the right period for the MA. 

• It also helps to account for the gap that often exists between prices and moving average lines.
• Can't be used as a single indicator and we need to combine this with other indicators or another McGinley indicator.

Price actions respect moving averages because so many traders use them in their strategies.

Because of the formula, the Dynamic Line speeds up in down markets and moves more slowly in uptrends. One wants to be quick to sell in a down market, yet ride an up-market as long as possible. 

News trading strategy

 A news trading strategy takes into account:

• News and market expectations before news releases.
• News and market expectations after news releases.

News trading tips:

• News can travel very quickly on digital media, so you need to be quick.
• You should make a quick judgment to figure out if the news already fully factored into the price? 
•  If the price is not matching the expectations how far it is from the expected number?
• Use any news as an individual entry and if there is more than one news use your judgment for the combined outcome.
• Have a strategy for any specific news release.
• Market moves are based on demand and supply and demand is heavily affected by the news.
• Every day there is a lot of news so we have lots of opportunities to trade.
• The market normally gets volatile if the news is not as per expectations.
• Use stop-loss using the previous resistance and support lines.

Short Squeeze Strategy

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