Uber TDFI - Trend Direction & Force Index [UTS]

Name: Uber TDFI - Trend Direction & Force Index [UTS]
Created: 2025/04/02
Updated: 2025/04/29
PineScript: v6

The "Trend Direction & Force Index" is a technical indicator created in 2018 and designed to assist traders in understanding market trends. It calculates the direction and strength of trends using a smoothed force index derived from price movements and moving averages. Unlike Elder's Force Index, which uses volume, it relies on price movements.

The indicator is best to determine when a trend is strong enough for entering trades or identifying potential reversals. Being non-repainting, it’s suitable for backtesting and strategy development, offering reliability for traders who need consistent historical data. It’s highly customizable, with options for 26 different moving average types and various price inputs from Candesticks over to Heiken Ashi candles.


Usage

The "Trend Direction & Force Index" is primarily used to identify the direction and strength of market trends, aiding traders in making informed decisions. Its smoothed nature reduces noise, making it suitable for longer-term trends or higher time frames, as opposed to short-term, choppy markets. Potential applications include:

Trend Confirmation: Traders can use it to confirm the direction of the trend before entering a trade, especially when the smoothed force value exceeds the trigger levels, indicating strong bullish or bearish momentum.

Reversal Identification: It can signal potential trend reversals when the force crosses from above TriggerUp to below TriggerDown or vice versa, providing entry or exit points. For instance, a cross below the zero line with ColorChangeOnZeroCross set to true might indicate a bearish reversal.

Customizability is a key advantage, with options for 26 different moving average types (e.g., SMA, EMA, Hull, Butterworth, FRAMA), periods, and smoothing parameters, enabling traders to tailor it to specific market conditions or trading styles. For example, setting a longer trendPeriod (e.g., 20) and SmoothLength (e.g., 5) might suit trend-following on daily charts, while shorter settings could be used for intraday trading.


Moving Averages

Trend-determining method offers 26 high quality Moving averages to choose.

• "SMA", Simple Moving Average
  
• "EMA", Exponential Moving Average
  
• "MDMA", McGinley Dynamic MA
  
• "DSEMA", Double Smoothed EMA
  
• "DEMA", Double EMA
  
• "TEMA", Triple EMA
  
• "WMA", Weighted MA
  
• "PWMA", Parabolic Weighted MA
  
• "VWMA", Volume Weighted MA
  
• "HULL", Hull MA
  
• "TMA", Triangular MA
  
• "B2P", Two Pole Ehlers Butterworth
  
• "S2P", Two Pole Ehlers Smoother
  
• "S3P", Three Pole Ehlers Smoother
  
• "SINE", Sine Weighted MA
  
• "LINREG", Linear Regression Value (LSMA)
  
• "ILINREG", Integral of Linear Regression Slope
  
• "NLMA", Non Lag MA
  
• "ZLMA", Zero Lag MA
  
• "SMOOTHER", Smoother
  
• "SSM", Super Smoother
  
• "ALMA", Arnaud Legoux MA
  
• "KAMA", Kaufman Adaptive MA
  
• "FRAMA", Fractal MA
  
• "RMA", Running MA (Wilder`s Moving Average)
  
• "JMA", Jurik Moving Average
  

Buy/ Sell Signals

The trend change signals are generated on trigger line crosses or, optionally on zero line cross.

• Buy signal: Triangle Up
  
• Sell signal: Triangle Down
  

Alerts

Trend change signals can be used to trigger alerts from.

• Trend
  
• Up Signal
  
• Down Signal
  

Example: Alert will be triggered when one of the
alert conditions are met:

"Up Signal" - "Greater Than" - "0"
"Down Signal" - "Less Than" - "0"