TCI Forecasting Models


Introducing TCI Indicator to the Web

There is a wide variety of technical analysis tools available today (indicators, oscillators, indices, ratios, charting patterns). The problem with them is that they are designed to look backward but not forward. TradingCenter using a wide trading experience created a new trading indicator called TCI. Trading Center Indicator (TCI) can be used to analyze any financial traded asset in any timeframe, both backward and forwards.

TCI Concept:Looking backward to identify what to buy and then looking forward to deciding when to buy it


The New Version of TCI at Trading Center

Since the first creation of the TCI model the formula incorporated is continuously evolving. The reason is that the global economy and the incurred market conditions are evolving, and thus, every trading system must evolve too, in order to adapt to these new market developments. For example, when the market volatility suddenly increases, trading systems must re-set their time frames to shorter periods, widen their stop-loss orders, and use tighter capital leverage.

What really distinguishes the new version of TCI

What really distinguishes the new version of TCI compared to old versions is the way time frames are now set and analyzed. Time frames for the new version of TCI are defined according to the Fibonacci sequence of numbers. This new approach is capable of further optimizing the accuracy of TCI results.

Why is the Fibonacci Sequence of Numbers Important

The Fibonacci Sequence of numbers is based on the Golden Ratio (Phi or Φ) which is equal to about 1.618 (1.61803398874989484820...). This Golden Ratio can be found everywhere in our universe but also in earth's nature and even as concerns our body’s proportions. Financial Markets has long accepted the importance of this Sequence of Numbers and thus popular technical analysis tools such as the Fibonacci Retracement can be found everywhere nowadays.

TCI Long & TCI Short

New TCI signals are based on two separate Indicators, TCI Long and TCI Short. The reason is that both short-term and mid-term are important in order we identify if a certain asset or a certain market is overbought or oversold. Furthermore, TCI Short enables optimizing time entry/exit points. As it is already mentioned, TCI can be set up forwards and define optimal future entry or exit in any financial asset or market. Here is an example of TCI Long and TCI Short indications. The market is Forex and the asset is EURUSD. If you take a close look you can see that when TCI Long reaches the level +40% the market tanks. That means that when TCI Long reaches the level +40% the hidden supply shows up closes its positions in a hurry (possible high-profitable positions).

TCI+ Forex Trading System

Introducing a New Era in Forex Technical Analysis

TradingCenter community is familiar with the TCI technical analysis system. TCI aims to indicate exaggerations in the short-term fluctuations of the World’s Financial Markets. Based on a complex algorithm of measuring abnormal fluctuations, TCI is able to generate trading signals regarding every popular Financial Market (Forex, Commodities, Stocks & Indices).

But how can an exaggerated price movement be identified?

Aren’t financial markets efficient enough to balance price exaggerations through financial arbitrage? The answer is no, and that is because new daily fundamental changes in the real markets are too complex to be evaluated instantly by arbitrage. Therefore new developments in real markets are not incorporated under the right extend nor the right time into financial market prices. New developments may need days or even weeks to be correctly evaluated and thus incorporated into financial prices. That is why we are using TCI technical analysis in the first place. Technical analysis can be used in general to identify overbought and oversold levels and thus forecast future price corrections.

Financial Markets Tend to Exaggerate and TCI Analysis Aims to Indicate it

But what does exactly technical analysis is able to forecast? It is able to forecast changes in the demand and the supply of a particular financial asset. In a narrow timeframe without news, the demand and the supply of a financial asset are determined by two factors of equal importance:

1) Psychology of the Market Participants

2) Global Arbitrage Movements

About TradingCenter

TradingCenter provides essential information and tools for learning and trading the Global Financial Markets. TradingCenter helps investors to improve their skills and their level of understanding regarding core mechanisms of the trading process.

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