TDI Trading Strategies Very Good

TRADERS DYNAMIC INDEX PRO
TDI FIVE - NOTES
T.D.I. FIVE
5 Trading Strategies of TDI Pro
www.compassfx.com/tdipro
© CompassFX
www.compassfx.com
Dean Malone
Traders Dynamic Index Pro Developer
Registered Series 3, 30, and 34 broker. NFA member and CTA.
Interviewed by CNBC, Reuters, CNN, WSJ, and others.
National trainer since 2002 having trained tens of thousands how

to trade the Forex market.
© CompassFX
www.compassfx.com
© CompassFX. Disclaimer: Trading in the off-exchange Foreign Exchange (Forex) market is very speculative in nature, involves considerable risk and is not
appropriate for all investors. Therefore, before deciding to participate in off-exchange Foreign Exchange trading, you should carefully consider your investment
objectives, level of experience and risk appetite. Investors should only use risk capital when trading Forex because there is always the risk of substantial loss. Most
importantly, do not invest money you cannot afford to lose. Any mention of past performance is not indicative of future results. Account access, trade executions and
system response may be adversely affected by market conditions, quote delays, system performance and other factors. 1
TDI FIVE - NOTES
Disclaimer
Trading foreign exchange on margin carries a high level of risk, and is not
suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should
carefully consider your monetary objectives, level of experience, and risk
appetite.
The possibility exists that you could sustain a loss of some or all of your
deposited funds and therefore you should not speculate with capital that you
cannot afford to lose.
You should be aware of all the risks associated with foreign exchange trading,
and seek advice from an independent advisor if you have any doubts. Past
returns are not indicative of future results.
Your trading results may vary. No representation is being made that any
software or training will guarantee profits or not result in losses from trading.
© CompassFX 3
www.compassfx.com
Traders Dynamic Index Pro

The Lines of the TDI
Green = Current Price Sentiment

Red = Crossover for Entry & Exit
Yellow = Overall Market Sentiment
Blue = Increasing/Decreasing Volatility
© CompassFX
www.compassfx.com
TDI FIVE - NOTES
Traders Dynamic Index Pro

The Levels of the TDI
68 upper level line

50 mid level line
32 lower level line
© CompassFX
www.compassfx.com
TDI Trading Strategies
1. TDI Signal
2. SP Reversal
3. TDI Hook
4. Squeeze
5. Hidden Secret
© CompassFX
www.compassfx.com
TDI FIVE - NOTES
TDI Signal
Trend & Angle Strategy
The beauty of the TDI Pro is in its simplicity to plot the
direction of market sentiment in relation to price action.
This strategy is the “everyday” strategy for all TDI Pro users
regardless if of the type of trader: scalper on a 1-minute or
5-minute chart, active or swing trader on intraday charts,
or position trader on a Daily chart.
To trade the TDI Signal, look to trade the Green line

crossing the Red line with good angle in the trend
direction of the Yellow line.
© CompassFX
www.compassfx.com
TDI Signal
1. Look for Green line & Red line crossovers.
2. At crossover, look for “strong angle” in the direction

of the overall trend (Yellow Market Base Line).
3. Compare direction of Price and TDI Green line.

Higher probable trade when both are moving in the same direction.
4. Enter trade if Price action and TDI Pro align.
5. Exit trade when Green line crosses over Red, Blue or

Yellow lines in the opposite direction.
© CompassFX
www.compassfx.com
TDI FIVE - NOTES
TDI Signal
Long Trade
• Angle of Green line between
12:30 & 2:00
• Market Base Line flat or rising

between the 32 & 50 levels.
• Avoid entry when Yellow MBL
is near the 68 level.
© CompassFX
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TDI Signal
© CompassFX
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TDI FIVE - NOTES
TDI Signal
© CompassFX
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TDI Signal
Caution:
MBL near
the 68 level.
Potential
reversal.
© CompassFX
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TDI FIVE - NOTES
TDI Signal
Long Trade Short Trade
• Angle of Green line between • Angle of Green line between
12:30 & 2:00 4:00 & 5:30
• Market Base Line flat or rising • Market Base Line flat or falling
between the 32 & 50 levels. between the 68 & 50 levels.
• Avoid entry when Yellow MBL • Avoid entry when Yellow MBL
is near the 68 level. is below the 32 level.
© CompassFX
www.compassfx.com
TDI Signal
© CompassFX
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TDI FIVE - NOTES
TDI Signal
© CompassFX
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TDI Signal
Caution:
MBL near
the 32 level.
Potential
reversal.
© CompassFX
www.compassfx.com
TDI FIVE - NOTES
TDI Signal
Reading the TDI Signal
On a 15-minute chart:
• Green line represents current price action.
• Red line represents 1-hour price action.
• Yellow line represents 4-hour price action.
© CompassFX
www.compassfx.com
SP Reversal
Swing / Position Reversal Strategy
The market tends to cycle up and down in a normal trading

range the majority of time. At times, the market will make
extreme moves beyond its normal range referred to as
“Overbought” and “Oversold” areas.
When the market is in these extreme areas, there is an

expectation for the market to move back into its normal
trading range. Thus, traders look for reversal trades.
Using the TDI Pro, monitor the Yellow (MBL) line on a

4-hour or Daily chart. When the MBL hits or extends
beyond the 32 level or 68 level, look for a reversal trade
setup that could run for days or weeks.
© CompassFX
www.compassfx.com
TDI FIVE - NOTES
SP Reversal
1. Monitor 4-hour and Daily charts.
2. Look for Yellow Market Base Line to hit the 32 or 68
levels… and possibly move beyond the 32 or 68 levels.
3. Wait for Yellow to close below the 68 level or close
above the 32 level.
4. Compare Price action to TDI Pro.
5. Enter trade when Green, Red, & Yellow lines crossover
in direction of reversal.
6. Exit trade when Green line closes after crossover of
Yellow line.
© CompassFX
www.compassfx.com
SP Reversal
Look for MBL

reversals on
the 4-hour &
Daily charts
at the 32 and
68 levels.
© CompassFX
www.compassfx.com
TDI FIVE - NOTES
SP Reversal
MBL reversal
on Daily chart
at 68 level
aligned with
a TDI Signal
Short entry.
© CompassFX
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SP Reversal
MBL reversal MBL reversal

at 32 level at 68 level
aligned with aligned with
TDI Signal TDI Signal
Long entry Short entry
on 4-hr chart. on 4-hr chart.
© CompassFX
www.compassfx.com
TDI FIVE - NOTES
TDI Hook
Intraday Reversal Strategy
The TDI Hook is another counter-trend strategy
designed to catch intraday reversals when the market
extends beyond the Volatility Band and either
below the 32 level or above the 68 level.
The name of this strategy derives from the bending

curve shape of the Green line, much like a fish hook, as
it moves back towards the 50 level.
TDI Hook is a built-in alert with slanted Green and

Orange arrows. Monitor the Yellow line for overall
trend sentiment and be watchful for price
continuation before a reversal occurs.
© CompassFX
www.compassfx.com
TDI Hook
1. Look for the Green Line to move beyond the 32 level or
the 68 level… and beyond the Blue Volatility band.
2. Monitor for a hook formation across the Blue Volatility

band… “hook down” if above 68 level and a “hook up”
if below the 32 level.
3. Look for either Divergence or potential Continuation.
4. Enter trade with a tight Stop Loss above previous High

or below previous Low.
5. Exit trade at Green & Red crossover, Fibonacci level, or

Stop Loss.
© CompassFX
www.compassfx.com
TDI FIVE - NOTES
TDI Hook
TDI Hook Short.
Price and TDI
aligned for
reversal down.
TDI Hook Long.

Price continues
lower before the
reversal up.
© CompassFX
www.compassfx.com
TDI Hook
TDI Hook Short

Good divergence
for reversal down.
Hidden Bearish
Divergence
© CompassFX
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TDI FIVE - NOTES
TDI Hook
TDI Hook Long

Good divergence
for reversal up.
Hidden Bullish
Divergence
© CompassFX
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TDI Hook
TDI Hook Short
signal. Moves to
61.8% Fib Retrace.
© CompassFX
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TDI FIVE - NOTES
TDI Hook
TDI Hook Short
signal. Moves to
200% Fib Extension
© CompassFX
www.compassfx.com
Squeeze
Breakout Strategy
The Squeeze strategy is a breakout trade. It derives
its name when the Blue Volatility lines compress or
“squeeze” together due to price consolidating into a
tight narrow range with low market volatility.
The location of the Volatility Band squeeze most

often determines a favorable trade direction.
If the squeeze occurs near the 68 level, look to trade

Short. If the squeeze occurs near the 32 level, look
to trade Long. If the squeeze occurs near the 50
level, be aware of economic events that can
influence the direction of price action.
© CompassFX
www.compassfx.com
TDI FIVE - NOTES
Squeeze
Breakout Strategy
1. Look for Blue Volatility lines to compress or “squeeze”
together.
2. Identify the placement of Green, Red, & Yellow lines to

determine potential break direction.
3. Enter a trade when Green line breaks one of the Blue

Volatility lines in the direction of the Red or Yellow lines.
4. Exit trade when Green line crosses Blue Volatility line

towards center.
© CompassFX
www.compassfx.com
Squeeze High
Breakout Strategy
Squeeze High Trade:

• Expect a reversal down with Yellow line near 68 level.
• Look for Green below Red and below Yellow.
• Enter on break of low Blue Volatility line.
• Exit when Green line crosses above low Blue Volatility line.
© CompassFX
www.compassfx.com
TDI FIVE - NOTES
Squeeze Low
Breakout Strategy
Squeeze Low Trade:

• Expect a reversal up with Yellow line near 32 level.
• Look for Green above Red and above Yellow.
• Enter on break of high Blue Volatility line.
• Exit when Green line crosses below high Blue Volatility line.
© CompassFX
www.compassfx.com
Squeeze Center
Breakout Strategy
Squeeze Center Trade:

• Expect a break in either direction from the 50 level.
• Evaluate the result of an economic event and overall trend
of Yellow line to determine potential break direction.
• Enter on break of high or low Blue Volatility lines.
• Exit when Green line crosses inside Blue Volatility line.
© CompassFX
www.compassfx.com
TDI FIVE - NOTES
Hidden Secret
Momentum Trade Strategy
With any good trading model, there should be a strategy
to ride the momentum of the market as far as it will go.
The Hidden Secret of the TDI Pro is a trade setup that

identifies where to enter and exit momentum trades.
The Hidden Secret setup can be found on all time frames

and often occurs following a Squeeze trade setup
accompanied by a strong economic event affecting
price action of a currency pair.
© CompassFX
www.compassfx.com
Hidden Secret
1. Shortly after a “Squeeze” condition or strong economic
event, look for the Green line to make a strong angle
while breaking one of the Blue Volatility lines.
2. Angle of Green line should be between 12:30 – 1:00 for

a Long trade or 5:00 – 5:30 for a Short trade.
3. Enter trade when Green line breaks Blue Volatility line.

Enter Long preferably if Green is equal or less than the
50 level. Enter Short preferably if Green is equal or
greater than the 50 level.
4. Exit trade as Green line crosses Blue Volatility line in

the opposite direction.
© CompassFX
www.compassfx.com
TDI FIVE - NOTES
Hidden Secret
Hidden Secret
Long Entry
Look for price
and TDI to trade
higher after
break of upper
Volatility line.
© CompassFX
www.compassfx.com
Hidden Secret
Hidden Secret
Long Exit
Exit when Green
line crosses
below upper
Volatility line.
© CompassFX
www.compassfx.com
TDI FIVE - NOTES
Hidden Secret
Hidden Secret
Short Entry
Look for price
and TDI to trade
lower after
break of lower
Volatility line.
© CompassFX
www.compassfx.com
Hidden Secret
Hidden Secret
Short Exit
Exit when Green
line crosses
above lower
Volatility line.
© CompassFX
www.compassfx.com

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TRADERS DYNAMIC INDEX PRO

TDI FIVE - NOTES

Registered Series 3, 30, and 34 broker. NFA member and CTA.

Interviewed by CNBC, Reuters, CNN, WSJ, and others.

National trainer since 2002 having trained tens of thousands how

Traders Dynamic Index Pro

Green = Current Price Sentiment

Traders Dynamic Index Pro

68 upper level line

TDI Trading Strategies

To trade the TDI Signal, look to trade the Green line

2. At crossover, look for “strong angle” in the direction

3. Compare direction of Price and TDI Green line.

4. Enter trade if Price action and TDI Pro align.

5. Exit trade when Green line crosses over Red, Blue or

• Market Base Line flat or rising

The market tends to cycle up and down in a normal trading

When the market is in these extreme areas, there is an

Using the TDI Pro, monitor the Yellow (MBL) line on a

Look for MBL

MBL reversal MBL reversal

The name of this strategy derives from the bending

TDI Hook is a built-in alert with slanted Green and

2. Monitor for a hook formation across the Blue Volatility

3. Look for either Divergence or potential Continuation.

4. Enter trade with a tight Stop Loss above previous High

5. Exit trade at Green & Red crossover, Fibonacci level, or

TDI Hook Long.

TDI Hook Short

TDI Hook Long

The location of the Volatility Band squeeze most

If the squeeze occurs near the 68 level, look to trade

2. Identify the placement of Green, Red, & Yellow lines to

3. Enter a trade when Green line breaks one of the Blue

4. Exit trade when Green line crosses Blue Volatility line

Squeeze High Trade:

Squeeze Low Trade:

Squeeze Center Trade:

The Hidden Secret of the TDI Pro is a trade setup that

The Hidden Secret setup can be found on all time frames

2. Angle of Green line should be between 12:30 – 1:00 for

3. Enter trade when Green line breaks Blue Volatility line.

4. Exit trade as Green line crosses Blue Volatility line in

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