https://t.

me/husnifx

TDI Crossover Strategy For MT5 By HusniFX

Chart setup with the TDI Crossover Strategy For MT5

Table Of Contents:

1. TDI Crossover Forex Strategy For MT4

2. Essential factors you should know
3. Functions of the key indicator
1. Traders Dynamic Index
2. Selection of the trading instrument
3. Supply and demand zone
4. The shift in market sentiment
4. The long trade setup sequence
1. Stop loss
2. Take profit
5. The short trade setup sequence
1. Stop loss
2. Take profit
6. TDI Crossover Strategy For MT5 – Useful Advice
7. TDI Crossover Strategy For MT3 - Conclusion

Please note: This strategy was publicly published in the HusniFX VIP trading community and is free to use.
We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major
factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore,
we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting
advantages, disadvantages and possible improvements of the strategy.

The TDI Crossover Strategy For MT5 is based on the well-known indicator Traders Dynamic Index (TDI).
Usually, the indicator is used to filter out the trade signals but you can also evaluate the overbought and
oversold state of a certain asset. You can also determine the momentum of the price movement by analyzing
the slope of the TDI indicator signal line.

The key algorithm for the TDI crossover is related to multiple RSI and volatility bands. In short, the indicator
evaluates the price momentum based on the RSI and volatility band indicator. But to execute quality trade
with the help of the TDI Crossover Strategy For MT5 you have to rely on other variables.
 https://t.me/husnifx

Essential factors you should know

1. Traders Dynamic Index (TDI)
2. Selection of the trading instrument
3. Supply and demand zone
4. The shift in market sentiment

Functions of the key indicator

To use the TDI Crossover Strategy For MT5 strategically, we have to know how the individual elements are
used in this system. If necessary, we have to learn the proper use of these essential factors by using a
practice trading account. So, let’s get a strong about the essential factors as they will help us during the live
trade execution process.

Traders Dynamic Index

The trader’s dynamic index has two upper extreme points. The upper extreme point is 68 and it is also known
as the overbought region and the lower extreme point is 32 and is known as the oversold region. The readings
are taken in the form of 2 signal lines, one is fast and another one is slow.

Selection of the trading instrument

Picking the right asset is important to your trade execution process. Try to learn the use of this strategy by
trading the major currency pairs. And be sure that you are opening the trades during the active trading
sessions only. Unless you open the trades in the active session, it will be tough to secure decent profit due to
the absence of volatility.

Supply and demand zone

Drawing the supply and demand zone is one of the most important steps while using the Supply and demand
zone. Since the trades will be executed at the support and resistance level, you must learn to find the
profitable trading zone.
 https://t.me/husnifx

Drawing the support and resistance line

A support or a demand zone should be drawn based on three significant lows. On the contrary, a valid
resistance level is determined with the help of three significant highs. You may also draw these levels with the
combinational approach of support and resistance level.

The shift in market sentiment

Changes in the market sentiment are so sudden that it often makes things harder to manage the running
trades. That’s why you should always be aware of the high-impact news before taking any trades. Avoiding
opening new trades 1 hour before the release of the news as they are prime factors that shift the sentiment of
the market.

The long trade setup sequence

The TDI Crossover Strategy For MT5 is designed to trade with the trend and major reversal. Since the
reversal trading method is a bit tricky, we will follow the trend continuation technique. Without any further
delay, let’s check the key steps to open up the long trade.

Conditions to execute the long trade

1. Pick an asset that is already in an uptrend. Look for higher lows in the H1 or H4 time frame for the uptrend
confirmation.
2. Use the significant lows of the market to draw the demand zone. The demand or the support level should
push the price higher once it is tested.
3. Wait for the bearish correction in the price. As the price test the important support level, a bullish candlestick
pattern must be formed.
4. A bullish candlestick pattern is identified by analyzing the opening and closing price of the candle. The
opening price of the candle must be lower than the closing price.
5. As the bounce takes place, the TDI signal line should show an ascending move from the 32 levels.
6. The green signal line at the TDI indicator should cross above the red signal line which shows the bulls have
established their dominance.
7. After checking all these conditions, you do have the liberty to open up the long trade without risking too much
of your trading capital.
 https://t.me/husnifx

Execution of the long trade

Stop loss
Since the trade is taken at an important support level, you should be setting the SL below that level. But be
advised, you should not risk more than 2% or any amount which you can’t afford to lose. It is better to learn
the use of the TDI Crossover Strategy For MT5 by risking 1% in the early stage.

Take profit
The take profit should be set at the nearest supply zone. Note that the resistance level which you will draw
should be in the H1 or higher time frame. And the minimum risk to reward ratio for the trade should be better
than 1:2.

The short trade setup sequence

In the last trade setup process, we have learned to open the long order by favoring the existing trend. But in
this segment, we will learn the proper way to trade the key reversal without exposing ourselves to significant
risk.

Conditions to execute the long trade

1. We have to pick the major currency pairs since analyzing the news data is going to be a bit easier while taking
the trades using the reversal technique.
2. Draw the critical resistance level by connecting three highs. You might use the horizontal line or the trend line
but use the line in the H1 or higher time frame only.
3. As the price test the critical resistance, look for the bearish price action signals. This means you should look
for a candle that has failed to gain its bullish strength near the resistance level.
4. As the price test the resistance level, you should spot slope change in the TDI indicator signal line. The signal
line should form a descending pattern.
5. The position of the green signal line should be lower than the red signal line as it indicates the price ready to
fall downward.
6. Usually, it is better to take the short trades in favor of the news event. Check the last major news release for
that specific asset.
7. The news data should favor the downfall in the price or else ignore the trade signals.
8. After checking all these variables, you may take short the asset in favor of the newly formed bearish trend.
 https://t.me/husnifx

Execution of the short trade

Stop loss
Since you are going to short the asset at the top of an uptrend, you should give the trade enough space to
survive the false spike. So, set the SL 5-10 pips above your desired SL price. Note that the desired Sl for such
trade is set above the critical resistance level.

Take profit
We all know taking the trades against the prevailing trend is a bit risky. To offset the risk factor, you should be
taking the trades with a 1:5 or higher risk to reward ratio. If possible, ride the trend by using the trailing stops
as it is often considered as an efficient way to maximize profit.

TDI Crossover Strategy For MT5 – Useful Advice

While using the TDI Crossover Strategy For MT5, you need to understand the functions of the TDI indicator.
The indicator comes into action once you have to determine the trade signal. So, use the TDI signal just as
the trade filter tool. But if you start taking the trades based on the TDI signals only, the system is not going to
generate a steady profit.

TDI Crossover Strategy For MT5 - Conclusion

Successful traders are well aware of the fact, trading the reversal is a tough choice. So, it is better to stick to
the trend trading method unless you feel confident with the system. And integrate the price action confirmation
signals while taking the trades as can significantly improve your trade signal quality. Last but not the least,
don’t be afraid to embrace small losses.

About Me
I'm Abdiwahab Hussein the owner of HusniFX Academy. My trading career started in 2017. Since 2019 I
have helped many traders to take their trading to the next level. Many of them are now constantly profitable
traders.

Join my Telegram Group for more information