Introducing TCI Indicator to the Web
There is a wide variety of technical analysis tools available today (indicators, oscillators, indices, ratios, charting patterns). The problem with them is that they are designed to look backward but not forward. TradingCenter using a wide trading experience created a new trading indicator called TCI. Trading Center Indicator (TCI) can be used to analyze any financial traded asset in any timeframe, both backward and forwards.
TCI Concept: “Looking backward to identify what to buy and then looking forward to deciding when to buy it”
The New Version of TCI at Trading Center
Since the first creation of the TCI model the formula incorporated is continuously evolving. The reason is that the global economy and the incurred market conditions are evolving, and thus, every trading system must evolve too, in order to adapt to these new market developments. For example, when the market volatility suddenly increases, trading systems must re-set their time frames to shorter periods, widen their stop-loss orders, and use tighter capital leverage.
What really distinguishes the new version of TCI
What really distinguishes the new version of TCI compared to old versions is the way time frames are now set and analyzed. Time frames for the new version of TCI are defined according to the Fibonacci sequence of numbers. This new approach is capable of further optimizing the accuracy of TCI results.
Why is the Fibonacci Sequence of Numbers Important
The Fibonacci Sequence of numbers is based on the Golden Ratio (Phi or Φ) which is equal to about 1.618 (1.61803398874989484820...). This Golden Ratio can be found everywhere in our universe but also in earth's nature and even as concerns our body’s proportions. Financial Markets has long accepted the importance of this Sequence of Numbers and thus popular technical analysis tools such as the Fibonacci Retracement can be found everywhere nowadays.
TCI Long & TCI Short
New TCI signals are based on two separate Indicators, TCI Long and TCI Short. The reason is that both short-term and mid-term are important in order we identify if a certain asset or a certain market is overbought or oversold. Furthermore, TCI Short enables optimizing time entry/exit points. As it is already mentioned, TCI can be set up forwards and define optimal future entry or exit in any financial asset or market. Here is an example of TCI Long and TCI Short indications. The market is Forex and the asset is EURUSD. If you take a close look you can see that when TCI Long reaches the level +40% the market tanks. That means that when TCI Long reaches the level +40% the hidden supply shows up closes its positions in a hurry (possible high-profitable positions).
Introducing a New Era in Forex Technical Analysis