How to use MT5/MT4
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The FX market does not always move significantly. After a prolonged period of calm, a trend can suddenly emerge. One of the common challenges beginners face is not knowing whether it is the right time to enter a trade or whether they should wait.
The Trend Compression Index (TCI) is an indicator that focuses not on price direction, but on overall market “conditions.” It clearly displays in numerical form whether the market is currently building energy or has already begun to move.
When the value is high, it indicates small price movements and a compressed market condition. Conversely, when the value is low, it shows that price movements are expanding, indicating a state of dispersion. This allows traders to objectively understand the current market phase before analyzing the chart in detail.
After an extended quiet period, the market can begin to move significantly. When TCI remains at a low level, it represents a phase where energy is being accumulated. When the value rises, it signals that price movements are starting to expand.
Particularly important is the timing when the market shifts from a compressed state to an expanded state. This change may indicate a shift in the market rhythm. When using trend-following strategies, such conditions tend to provide more favorable trading opportunities.
However, TCI does not directly generate buy or sell signals. Rather than indicating direction, it serves as a supplementary tool to assess whether the market environment is conducive to movement.
For beginners, it is more important to reduce unnecessary entries than to increase the number of trading opportunities. When the market is in a compressed state, choosing to wait rather than rushing into a position can often be the more effective decision.
The Trend Compression Index does not produce flashy signals. Instead, it quietly reveals the underlying “ease of movement” within the market. Use it not to increase trade frequency, but to enhance the quality of your trading decisions.
※This indicator operates only on TitanFX Windows versions of MT5 and MT4.
| Variable Name | Description | Default |
|---|---|---|
| ATR Period | Specifies the ATR period used to calculate the TCI. | 20 |
| Smoothing Period | 50 | |
| Compression Threshold | 70 | |
| Expansion Threshold | Defines the level recognized as an expansion state. | 110 |
| Show Markers | Specifies whether to display a mark when transitioning from a compression state to an expansion state. | true |
| Notifications | Specifies whether to enable alerts. | true |
| Variable Name | Description | Default |
|---|---|---|
| 0 | Color of the TCI line | DodgerBlue |
| 1 | Specifies the color of the compression threshold line. | Aqua |
| 2 | Specifies the color of the expansion threshold line. | Tomato |
| 3 | Specifies the color of the mark. | Yellow |
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