Trend Intensity Index
TII

The trend Intensity index is based on an article of M. H. Pee which was described in June issue in 2002 of the Stocks and Commodities for the first time.

TII shows the trend strength of a present trend. The stronger the present trend is, the more probably the market will move in the same trend direction. It is recommended to invest in the market if a stronger trend exists - namely as long as the trend reverts.

Calculation:

TII = 100 * (SDPOS) / (SDPOS + SDNEG)

SDPOS = Sum of Up Deviations Over Minor Period (CL - MA)
SDNEG = Sum of Down Deviations Over Minor Period (MA - CL)


Interpretation:

• The TII has a fluctuation margin from 0 to 100
• A value TII more than 50 signals an upward trend
• If the TII falls under 50, the probability that a downward trend is initiated is big
• 50 is valid as a trend-neutral level
• The closer the TII approaches 100, the stronger the trend is
• The closer the TII approaches 0, the weaker the trend is

It is recommended to build up longs if the TII rises more than 80.

It is recommended to sell if the TII falls under 20.As a rule 2 periods are called for the sliding average (MA):