TCI is short for Trend Confirmation Index, and it represents a Metatrader 5 indicator that is able to calculate the current state of the market.
Traders can also gauge overbought (>70) and oversold (<30) market conditions when using the TCI MT5 forex indicator.
Assuming the close price contained within the candlestick holds information on whether the trend is strong or weak and whether it attains or losses its strength, the TCI MT5 indicator will gauge these properties.
There are five customizable inputs parameters found on the TCI input parameter settings:
- Period – defines the calculation period
- Method – defines the calculation method
- Overbought level –define the overbought level
- Oversold level – defines the oversold level
- Show actual CPP – whether to show the close price location line (Closing price position) for each candlestick or not (Yes/No)
The EUR/JPY H1 chart below displays the TCI Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the forest green line of the TCI Metatrader 5 forex indicator breaks and hovers above the 50.00 level.
Sell Signal: Go short when the forest green line of the TCI Metatrader 5 forex indicator dips and hovers below the 50.00 level.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the forest green line of the TCI MT5 custom indicator breaks above the 70.00 level (into the overbought region) or falls back below the 50.00 level.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the forest green line of the TCI MT5 custom fx indicator dips below the 30.00 level (into the oversold region) or surges above the 50.00 level.
Tips: The TCI is designed to alert traders on extreme market conditions and can also show possible market trends.
Interestingly, short-term and medium-term currency traders will find the TCI MT5 forex indicator a good addition to their trader’s tool box.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Period, Method, Overbought level, Oversold level, Show actual CPP), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the TCI.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)