TAI (Trend Analysis Index) is a simple trend indicator described by Adam White in the "Stocks & Commodities" magazine in August, 1992.
The indicator has four configured parameters:
- MA Period - MA calculation period;
- MA Method - Moving Average calculation method;
- TAI Period - trend index calculation period;
- Applied price - price used for calculations.
Calculation:
TAI = (MA_Max - MA_Min) / Price*Point
where:
- MA_Max, MA_Min - the highest and the lowest MA value over TAI Period
- MA = MA(Applied price, MA Method) - moving average with the MA Period and the MA Method calculation method
- Price = SMA(1, Applied price) - simple moving average with the Applied price
