Trend Analysis Index - Improvements - MetaTrader 5 Script | Forex Indicators Download - MT4/MT5 Resources

Adam White in his article "Derived Moving Averages" (back in 1996) described what he called the TAI (Trend Analysis Index) indicator as the basis for trade entries. Frankly, it's obvious that computers and market data were rare at the time, as indicators couldn't be used for trading in the form they were originally imagined and described. There are two main reasons:

It is trying to solve the two main problems described. It introduced floating levels (since floating levels always adapt to the value, thus bringing the level closest to available), and it changed the calculation in a different way - the calculation mode changed not much, but importantly (in terms of values ​​produced), and since the code changed not much, the original name of the indicator was preserved. Perhaps if its original creator had had the tools and means we have today when he created it, he would have made the necessary changes.

The results are not perfect (none of the indicators are :)), but are far from the original erratic results and now they seem to be usable for trading as well.

You can use color changes to signal entry, re-entry, and exit.

A "big picture example" (and why it's available now). Some experimentation is recommended, but it seems we are developing a tool that can be used for trading.

Attachment download

📎 trend_analysis_index_-_ic_fl.mq5 (10.84 KB)

Source: MQL5 #22630