Introducing the TCI Indicator to the Web
Today, there are many technical analysis tools available—indicators, oscillators, indices, ratios, and chart patterns. The problem is that all of them are designed to look only backward, and not forward. 🔗 More: » Technical Analysis Guide
TradingCenter, drawing on extensive trading experience, has developed a new trading indicator called TCI. The Trading Center Indicator (TCI) can be used to analyze any traded financial asset in any timeframe—both historically and in forecasting future movements.
📌 TCI Concept: “Look backward to identify what to buy, then look forward to decide when to buy it”
The Improved Version of TCI at Trading Center
This Is How TCI Works
Since the original creation of the TCI model in the early 2000s, the formula behind it has been continuously evolving. This is because the global economy and market conditions are always changing. To stay effective, any trading system must adapt to these changes. For example, when market volatility increases, trading systems need to adjust by shortening timeframes, widening stop-loss levels, and using tighter capital leverage.
What Distinguishes the New Version of TCI
What sets the new version of TCI apart from earlier versions is the way timeframes are now defined and analyzed. The updated TCI uses timeframes based on the Fibonacci sequence. This approach improves the accuracy of TCI’s forecasting results.
Why the Fibonacci Sequence Matters
The Fibonacci sequence is based on the Golden Ratio (Phi or Φ), approximately 1.618 (1.61803398874989484820…). This ratio appears throughout the universe, in nature, and even in the proportions of the human body. Financial markets have long recognized the importance of Fibonacci mathematics, which is why tools like Fibonacci Retracement are widely used in technical analysis today. 🔗 More: » Trading with Fibonacci Primes
TCI Long & TCI Short
The new TCI signals are generated by two separate indicators: TCI Long and TCI Short. This is because both short-term and mid-term trends are important when identifying whether an asset or market is overbought or oversold. TCI Short also helps fine-tune entry and exit timing. As mentioned earlier, TCI can be used to look forward and define the best times to enter or exit any market or asset.
Here’s an example using TCI Long and TCI Short on the EUR/USD pair in the Forex market. If you look closely, you’ll see that when TCI Long hits +40%, the market tends to fall. That suggests hidden supply appears at that level, quickly closing out what are likely high-profit positions.
