Trend Intensity Index

No. While both oscillate 0-100, they measure different things. RSI measures momentum and can indicate overbought/oversold conditions. TII measures trend CONSISTENCY - how often price is above vs below the moving average. High TII (>80) means STRONG trend, not overbought.

Start with standard settings: 30-period moving average and 30-day lookback. Use 80/20 thresholds for strong trend signals and 50 as centerline. These work well for most swing trading applications.

No! This is a common mistake. TII > 80 means the trend is STRONG, not exhausted. Unlike RSI, high TII suggests trend continuation, not reversal. Stay with the trend when TII is high. Consider selling when TII FALLS from high levels, especially crossing below 50.

Yes, but use shorter settings. Try 10-20 period MA with matching lookback on hourly or 4-hour charts. Day trading TII will be more volatile. The concept remains the same - high TII = strong trend, low TII = strong downtrend.

Use TII as a filter. Before taking any long signal, check that TII > 50 (stronger filter: > 60). Before any short signal, check TII < 50. This filters out weak signals in trendless markets and improves your system's win rate.

TII divergence works like other oscillator divergences. Bullish divergence: price makes lower low, TII makes higher low (downtrend weakening). Bearish divergence: price makes higher high, TII makes lower high (uptrend weakening). Divergence warns of potential reversal but isn't immediate signal - wait for confirmation.

Use both for complete picture. ADX measures pure trend strength regardless of direction - high ADX means strong trend but doesn't tell you which way. TII is directional - above 50 is bullish, below is bearish. Together: ADX > 25 + TII > 70 = confirmed strong uptrend.

MA crossovers produce many false signals in ranging markets. TII filters these out by confirming the trend is real. Only take bullish MA crossovers when TII > 50 (or 60 for stronger filter). Backtests typically show 15-25% improvement in Sharpe ratio with TII filter.

Depends on your style. Aggressive: exit when TII drops below 60-70 (captures more profit). Standard: exit when TII crosses below 50 (stays in trends longer). Scaled: exit 50% at first weakening, 50% at centerline. Test to see which works best for your instruments.

Yes. Dual TII system uses fast TII (20-period) for timing and slow TII (60-period) for trend. Fast crossing above slow = bullish. This is similar to MACD logic but applied to trend strength measurement. Reduces noise while capturing major moves.

Test a grid of MA periods (20-60) and thresholds (70/30 to 85/15). Use walk-forward validation: optimize on 60% of data, validate on 20%, final test on 20%. Look for 'robust zones' where neighboring parameters perform similarly. Avoid single 'optimal' settings.

TII > 80: Directional bullish (calls, bull spreads). TII < 20: Directional bearish (puts, bear spreads). TII 40-60: Neutral strategies (iron condors, butterflies). Use TII level to select strikes - MA level becomes key support/resistance for spread strikes.

Daily scan: Classify all stocks by TII regime. Allocate: Overweight strong TII (>80 or <20), standard for moderate, avoid neutral. Track transitions. Exit when TII crosses centerline against position. Monitor portfolio average TII for overall market bias assessment.

Different instruments have different TII distributions. Some rarely exceed 75, others routinely hit 90. Dynamic thresholds use percentiles (e.g., 80th/20th percentile TII over lookback) to adapt to each instrument. Improves signal quality for instruments with unusual TII behavior.

TII momentum (rate of change) measures if trend strength is accelerating or decelerating. TII may be at 85 (strong) but TII momentum negative (weakening). This gives early warning before TII actually drops. Falling TII momentum while TII still high = prepare for exit.