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TII is an oscillator used to gauge trend strength. Its values range from 0-100; any values above 50 indicate bull trends while values below 50 indicate bear trends.
There are various trading systems based on TII. The most well-known method involves two signal lines at 20% and 80% level; another simpler strategy entails using only the middle line (50%) as it generates buy signals when crossing below or sell signals when crossing above it.
TII vs RSI
The Trend Intensity Index (TII) is a trading indicator designed to help traders gauge the strength of a price trend. Based on principles similar to Relative Strength Index (RSI), this metric uses different calculations and indicators in order to generate trading signals. Ranging from 0 to 100, values above 50 signify bullish trends while below 50 indicate bearish ones – meaning you could use this indicator alone or combined with other technical indicators as filters to filter potential trading signals.
The TII is computed by taking into account price deviations from their moving average and tabulating them, similar to how an RSI works. As with its volatility-weighted moving average counterpart, however, more recent data than older data are weighted towards. Furthermore, its greater sensitivity to price fluctuations than its RSI makes the TII an invaluable tool in volatile markets.
To calculate TII, a 30 period simple moving average must first be created and deviations of close prices from this moving average calculated for every bar; positive and negative deviations are then combined into SDPOS/SDNEG summations before the TII can be calculated as (SDPOS + SDNEG)/(30 period MA).
Another way of interpreting the TII is to look at its slope. If the TII line slopes upward, this signals an opportunity for buying while when it slopes downward it represents selling signals.
There are various strategies for trading the TII, but two basic systems are especially popular. One strategy involves purchasing when the TII crosses either 20% or 80% levels; or selling when it reaches the middle line of 50% from above. Both trading systems operate under the assumption that when trends become stronger they’re more likely to continue.
TII vs Stochastic
The Trend Intensity Index (TII) is a technical indicator that measures the strength of price trends of stocks, ETFs and other tradable assets. The index works on the assumption that stronger price movements indicate an increasing likelihood of future moves in that direction, so traders typically enter markets during strong trending movements to ride them until signs emerge of any possible reversals.
The Trailing Index Index (TII) is calculated as the moving average of positive and negative deviations over two periods shorter than those used to compute a simple moving average (SMA), using this formula: TII = SMA(7)/SMA(65) * 100. Once calculated, its resultant value can then be plotted onto a chart, with higher scores signalling stronger trends.
As is true of most indicators, there are various methods for interpreting TII. One popular interpretation relies on crossovers between TII and two horizontal signal lines, typically at 20% and 80% levels; another method uses a 9-period exponential moving average applied directly to TII as a signal line – providing a simpler yet more effective means of signal interpretation; though additional market analysis tools should still be used as confirmation tools when trading signals are generated by using TII alone.
Traders can use the TII rating scale from 0-100 to identify stocks that are on an upward or downward trend; with values above 50 signifying bullish trends and values below 50 signalling bearish ones.
Learning the TII can best be achieved using it on a demo account provided by your broker, such as IQ Option. This enables you to experiment with various strategies without risking real money and ensures you can enter trading confidently when you switch over. Practise on your demo account first before trading with real funds as this will allow you to refine and test out various approaches without taking unnecessary risks with real funds.
TII vs MACD
The Trend Intensity Index is a trading indicator designed to measure the strength of trends in financial markets. It acts like an oscillator by tracking momentum over time and can be used to detect potential buy and sell signals. Additionally, using it alongside other technical analysis indicators for optimal results.
The MACD indicator is one of the most renowned trading indicators and it can be used to quickly spot trends on charts. Its usefulness for traders lies in spotting market reversals and when to enter and exit stocks; however, false or misleading signals could potentially occur as well – so it is critical that any MACD trading strategy be thoroughly tested prior to investing real money.
There are various ways of interpreting the MACD indicator, but one popular way is looking for MACD line crossings; when positive signals appear they indicate rising prices while negative ones indicate falling ones.
MACD can also be traded by monitoring divergences between its line and price, which could indicate an imminent change of trend reversal; this technique can prove particularly helpful when the market is in consolidation phase.
MACD trading strategies can also be found online and provide traders with great returns. From complex to straightforward systems, traders can find various MACD strategies suitable for them online – these may provide complex or basic returns but they also produce many false signals during periods of weak or sideways trending – this makes combining other momentum indicators necessary in order to minimize false alarms.
Though TII may be easier for novice traders to interpret than other popular momentum indicators such as Stochastics or RSI, it still offers ample trading opportunities. Furthermore, this tool can easily be combined with other momentum indicators to form more complex trading systems.
TII vs EMA
An important indicator for traders, a strong trend can help identify potential buy and sell signals by watching for line crossings at key levels. But traders must remember that markets can be unpredictable; calm periods may quickly transition into volatile ones. Thus making it impossible for standard technical analysis tools to accurately forecast market behavior.
The Trend Indicator Index, or TII, is an oscillator designed to measure the strength of trends in financial markets. TII employs a 60-bar simple moving average as its foundation, and compares prices with it, counting how often prices close above or below it over time. M.H. Pee developed this indicator specifically to detect strong market movements.
Calculating TII is relatively straightforward: first a 60-bar simple moving average is calculated, and each close in the last 30 bars compared against it; any deviations are recorded and added together into positive and negative deviation values to calculate an index number for that bar before being summarised and divided by 100 to produce its TII value.
This method offers an alternative to the more data intensive and lengthy EMA model. TII calculations take into account intraday highs and lows which may help predict price movements in highly volatile markets as well as volatility relative to its historical level.
The TII indicator offers numerous settings for traders to select the one which best meets their trading style and financial instrument of interest. To optimize results with any TII-based strategy, it is advisable to test them using a demo account first so as to get acquainted with its indicators as well as evaluate their effectiveness before investing real money in them; doing this also gives traders time to develop and refine strategies using other technical analysis tools and filters in conjunction with it to avoid false signals.
