The Tom Joseph Trend Index (TJTI) is a dynamic mathematical model that can be used to identify the trend of the market, the direction of the trend, and the strength of the trend. The TJTI has very complex routines and may take a few seconds to calculate (depending on the PC available to the user).
The TJTI calculates a Trend Index Value, which can be set to track the short, medium, normal, or long term trend of the market. There are times when a market fails to generate a Trend Index Value and these are usually seen during extreme congestion periods.
Once the Trend Index Value is calculated, the software internally calculates and projects various price action values, which are dynamically adjusted to the current market conditions. This is used to classify the strength of the Trend and is displayed in four colors that you can choose.
Of these four strengths, you can only adjust the noise color.
Almost all Wave Three phases and extended Wave Five phases generate a strong (red) Trend Index Value. Generally, most of the phases start out with low or medium strength trends and progress to a strong trend. However, many times the strong (red) trend appears during the early stages of a move and the TJTI is designed to detect this.
Wave Three phases and extended Wave Five phases also show a strong tendency to lower their Trend strength prior to completion. The TJTI detects this quickly and alerts the user by downgrading its Trend strength and changing to a lower strength color.
•Display
•Period: The time period for the trend index values.
•Trend Length: Index values can be set to track the short, medium, normal, or long term trend of the market.
•Fast: Determines if the TJTI is calculated "Fast". Yes indicates that a shorter predefined period is used; no uses a longer period.
•Price: Determines the price level comparison. Options include: open, high, low, close, mid-point, HLC/3, average, true high, true low, range, or true range.