**Introduction to Trend Intensity Index (TII)**

The **Trend Intensity Index (TII)** is an effective oscillator for measuring the current trend’s strength in financial instruments. It stands out for its ability to work alone or alongside other trend-following indicators, providing clear insights into price movements during trending markets.

**About TII’s Creator and Function**

**M.H Pee** developed TII, a tool that varies between 0 and 100%. If the value exceeds 80%, it signals a strong bullish trend. Conversely, a value under 20% suggests a strong bearish trend. TII also includes a signal line, the 9-period exponential moving average of the TII line itself.

### Best Timeframes for TII

TII is flexible and works well in any timeframe you choose to analyze.

**Additional Learning Resources:** Know Sure Thing (KST) AFL Code

### Visual Demonstration of TII

The image below shows the Trend Intensity Index (TII) on an Amibroker chart, depicted as a white line over the candlestick chart. Alongside TII, you’ll notice the signal line, presented as a blue line.

### TII’s AFL Code

` ````
```//------------------------------------------------------
//
// Formula Name: Trend Intensity Index (TII)
// Website: https://zerobrokerageclub.com/
//------------------------------------------------------
_SECTION_BEGIN("Trend Intensity Index");
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} â€“ {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( Close, "Price", colorWhite, styleCandle );
n = Param("Periods",10,5,100,5);
//Calculate Simple Moving Average (SMA) of the closing prices
SMA=MA(Close,n);
//Calculate Positive and Negative deviation of the closing prices from SMA calculated in step 1
Dev = Close - SMA;
posDev = IIf( Dev>0, Dev, 0 );
negDev = IIf( Dev<0, abs(Dev), 0 );
//Calculate sum of Positive and Negative deviations for the period twice smaller than period used for SMA calculation.
if ( n%2 == 0)
m = n/2;
else
m = (n+1)/2;
SDpos = sum(posDev, m);
SDneg = sum(negDev, m);
//Calculate Trend Intensity index
TII = 100 * (SDpos) / (SDpos + SDneg);
//Calculate second line (Signal line) as EMA applied to TII
TIISignal = EMA(TII, 9);
Plot( TII , "TII", colorWhite, styleLine | styleOwnScale );
Plot ( TIISignal ,"TII Signal", colorBlue, styleLine | styleOwnScale );
_SECTION_END();

### Detailed Explanation of the TII AFL Code

Calculating TII involves several straightforward steps:

**Step 1:** Start by calculating the simple moving average (SMA) of the closing price over ‘n’ periods.

**Step 2:** Next, find the positive and negative deviations of each candle’s closing price from the SMA.

Dev = Close – SMA

If Dev is greater than 0, then posDev equals Dev; otherwise, negDev equals the absolute value of Dev.

**Step 3:** Sum up the Positive and Negative deviations over a period half that of the SMA period.

SDpos = sum(posDev, m); SDneg = sum(negDev, m);

‘m’ equals n/2 for an even ‘n’, and (n+1)/2 for an odd ‘n’.

**Step 4:** Use the following formula to calculate the Trend Intensity Index:

TII = 100 * (SDpos) / (SDpos + SDneg);

**Step 5:** Finally, calculate the signal line as the 9-period exponential moving average of TII.

TIISignal = EMA(TII, 9);

We then plot TII and TIISignal on the candlestick chart using Amibroker’s “plot” function.

### Trading Strategies with TII

When using TII for trading, here are some straightforward rules to follow:

- When TII is above 80, it suggests a strong uptrend.
- A TII below 20 indicates a significant downtrend.
- Consider going long if TII rises above 20.
- Think about going short if TII falls below 80.
- Go long when TII crosses above its signal line (TIISignal).
- Go short when TII crosses below its signal line (TIISignal).

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