TDFI can range from -1 to 1 and thus indicate the direction of the trend.
In periods of consolidation ratios take very low values close to zero as a rule, do not exceed the value of 0.05 (and -0.05), which have set arbitrarily as horizontal signal lines. Rate accelerates rapidly to higher values when the consolidation ends and is a good chance of becoming a permanent trend.
As an extension, the trader can assume that as long as the pointer moves above the signal line and does not come down to the low value of less than 0.05 for at least two bars the trend continues. So the descent below signal line and a return to higher values should be interpreted as a temporary weakening trend. Not before rate remains below 0.05 for at least 2 bars, can we consider that the market is likely to begin to consolidate
In addition, we can assess the strength of the trend, depending on the value of the index – the index reaches 1 trend is strong (-1 is a strong downward trend) and generally values above 0.6 should be so interpreted. Less than in decline should be considered that the trend is losing its momentum.
Note the above won't be interpreted correctly as the tema function body needs to be indented correctly
laurentg
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@causecelebre, I don't know what you mean? If i givve pinescript the calculation of tema it should work right ? so i know have this
tema(src, len) =>
ema1 = ema(src, len)
ema2 = ema(ema1, len)
ema3 = ema(ema2, len)
(3 * ema1) - (3 * ema2) + ema3