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 = (MA_x / MA_y ) * 100, where MA_x = "Moving Average" shorter time period MA_y = "Moving Average" longer period.

The following parameters are available for calculating the TCI:

• MA - Moving Average
• Example - Triple Exponential Moving Average
• WMA - Weighted Moving Average

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