Trend Intensity Index on IQ OptionToday I am going to describe one that is designed to measure the strength of the trend. It is known as the Trend Intensity Index. There are many technical analysis indicators that traders use to get better results.

What is Trend Intensity Index?

This type of oscillator was invented by M. H. Pee. It measures the strength of the trend and produces trading signals. They are based on the supposition that the price will continue in the previous direction when the trend is strong.

The TII indicates a strong trend when its line falls below 20 or rises above 80 per cent. When it goes in the direction of the middle 50 line, it gives a signal the trend is getting weaker.

Chart preparations

First, log in to your IQ Option trading account. Choose the financial instrument for the session. Then, click on the Indicators icon. Choose the ‘Trend' type and the list of the indicators will unfold on the right side. Choose the Trend Intensity Index and it will be added to your chart.

How to insert Trend Intensity Index on IQ Option platform
How to insert the Trend Intensity Index on the IQ Option platform

How to read the Trend Intensity Index?

The TII is an oscillator. Its line moves below the price chart from 0 per cent to 100. The middle line 50 is also visible in the indicator window.

You may notice similarities to the Relative Strength Index or the Stochastic lines. The main principles for these three indicators are indeed the same.

TII oscillates in the range from 0 to 100 percent
Trend Intensity Index chart oscillates in the range from 0 to 100 per cent

2 trading methods based on the Trend Intensity Index

Now, I am going to present two basic trading methods that are based on the TII. You can use them as is or you can tweak them to create your own Trend Intensity Index trading strategy.

Using overbought and oversold areas of Trend Intensity Index

This trading system produces signals when the oscillator crosses the lines of 20 or 80. You should be prepared to buy when the TII line was below the level of 20% and now rises above it.

Sell when the oscillator crosses the 80 line from above.

Buy and sell signals from TII
Buy (green) and sell (red) signals from TII

Using a middle line of the Trend Intensity Index

This system is a bit less popular. It takes into account the middle line of 50 per cent. The rule is very simple.

Open a long transaction when the TII crosses the middle line from below.

Enter the short trade when the oscillator drops below the 50 line.

TII crossing 50 percent line
Buy (green) and sell (red) signals from TII crossing 50 per cent line

Summary

Trading with the use of the Trend Intensity Index is quite simple. It requires only that you observe the crossings of the important lines. There are, however, many false signals generated. That is why it is a good idea to complement the method with some trend filter. It can be, for example, the Exponential Moving Average with the period of 200.

For different assets, you can try different settings of the Trend Intensity Index. Do not forget to test the strategy in the demo account. IQ Option provides such an account for its users for free. It is supplied with virtual cash and you can refill it if needed. This way you do not risk your own money before you get to know the strategy well.

Wish you a good experience!

GENERAL RISK WARNING

IQ option products like CFDs and options are investments that can be risky. This means that if you invest in them, you could lose your money quickly. In fact, 83% of people who invest in CFDs with this provider "IQ Option" lose money. You should make sure you understand how CFDs work and if you can afford to risk losing your money. Remember, this article is not giving you any advice about investing. Any information about what happened in the past or what could happen in the future is just an opinion and not guaranteed to be true. Including examples given in the content displayed.
Be warned!

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Bart Bregman

Author / IQ Option expert: "My name is Bart Bregman, I have 9 years of full-time professional trading experience. I've been trading with IQ Option for more than 7 years, mainly on the shorter time frames doing technical analyses, and have many experience with Binary Options, CFDs, Options, and Crypto trading. There is no such thing as a bad trade! As a digital nomad trader, I'm mostly traveling all over the world. Follow my journey on Instagram at https://www.instagram.com/bart_bregman/. "

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