Indicator "Trend Confirmation Index"
If we use an assumption that theclose price location within a candlestick contains information of whether the trend is strong or weak and whether it gains or loses its power, then we can calculate the current market state - a trend confirmation index (TCI).
Indicator TCI calculates the average value of the close price location within the last N candlesticks.
Close price location within a candlestick is calculated as (C-L) / ((H-L) / 100)
The indicator has five configurable parameters:
- Period - calculation period
- Method - calculation method
- Overbought level - overbought level
- Oversold level - oversold level
- Show actual CPP - whether to display the close price location line (Closing price position) for each candlestick or not (Yes/No)
Calculation:
TCI = MA(CPP)
where:
CPP = 100.0 * (Close-Low) / (High-Low) MA is the moving average with the Method calculation type and the Period calculation period
