| The trend acknowledgment indicator, shortened TBI, is based on two sliding averages and is not to be seen as an independent technical study. The TBI tries to confirm a trend already recognized by a GD with the help of the second GDs. Both GDs, in general short- and medium-term, are divided in addition and multiplied by 100. The so preserved ratio sways therefore around the 100 line. TBI = (GDx : GDy) * 100 GDx = sliding average (shorter period) The indicator delivers a purchase signal if the course cuts the 100 line bottom up. This means that the shorter GD overtakes the longer one, so has cut bottom up. At this moment the trend defined by the longer GD has been confirmed by the shorter GD. Vice versa, so with a cut of the 100 line top down, is valid mirror-image the same one. (Not necessarily classical) application method of the TBIs: If the second GD is put on the value 1, so this GD corresponds to the market price course. Thus it is reached that the TBI displays the distance between the first GD andthe market price course. Because some analysts also pay attention to exaggerations, as "too big" distances between GD, in particular to 200 days of GD and the market price course, this can be absolutely interesting. The TBI should be used not as an independent signal transmitter, but merely for the confirmation of already available signals. An absent confirmation by the TBI should be underestimated by no means, just in trend markets.
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