Trend Confirmation
Type
Trend analysis indicator
Short introduction
The Trend Confirmation Indicator (TCI) is generated by dividing a short-term moving average by a longer-term moving average.
The result is multiplied by 100 to obtain an indicator that varies by 100.
Statement
The TCI divides two moving averages to generate trend change signals.
Formula/calculation
We calculate these values as follows:
TCI = (MAx / MAy ) * 100, where MAx = "Moving Average" shorter time period MAy = "Moving Average" longer period.
The following parameters are available for calculating the TCI:
Interpretation
Potential trade rules:
- If the TCI cuts the 100 line from bottom to top, then there is a buy signal.
- If the TCI cuts the 100 line from top to bottom, then there is a sales signal.
Default setting
- Period short: 5 periods
- Period long: 10 periods