Oscillator TCI (Trading Channel Index) displays the ratio between the average daily price and the smoothed averaged value of the average daily price.
It has four configurable parameters:
- Period - calculation period;
- Average period - period of calculating the average smoothed value;
- Coefficient - coefficient (indicator price scale values scaling);
- Applied price - price used for calculations.
Calculation:
TCI = EMA(B2, Average period)
where:
B2 = (Applied price - MA1) / (Coeff * MA2)
MA2 = EMA(B1, Period)
B1 = Abs(Applied price - MA1)
MA1 = EMA(Applied price, Period)