Qexpert's Domain Portfolio

Major Financial Web-Sites List









TCI Technical Analysis System

TCI -Technical Analysis System

TCI means ‘Trading Center Indicator’ and it is a technical analysis system based on historic trading action that can be used for forecasting any price pattern of any financial market or asset. The system was introduced to the web by our site TradingCenter.org.

TCI can Analyze Any Financial Market

TCI SystemOne of the key features of the TCI model is that it can perfectly analyze any financial market or asset in any timeframe. That includes Forex, Stocks, Indices, Bonds and Commodities. There is a common factor behind the price behavior of any financial market / asset. That factor is our human psychology. Human psychology is repeating itself in different markets and it is characterized by exaggerations that tend to form overbought and oversold markets.

The Psychological Factor in Short-Terms Periods- Technical Analysis Vs Fundamental Analysis

Fundamental Analysis is the King in the Long-Run

In the long-run the price of any market / asset is valuated based on fundamental facts and figures. For example the price of a Forex exchange rate or a Government Bond is based on the level of interest rates, inflation and other major macroeconomic figures. From the other hand the price of a stock-market share is based on factors such is earnings, dividends, market shares etc. In the long-run, financial markets are wise enough to give credit to real market performers. But are the same markets wise in short-periods too? The answer is probably no.

Technical Analysis is the King in Short-Term Periods

Usually market developments are happening so fast that investors can’t deal with them in the same paste in short-periods. New technologies and other major developments can change the strategic ‘Status Quo’ of any industry. During such periods fundamental analysis becomes obsolete as it can’t longer provide realistic valuations. At this exact moment when fundamental valuations are changing financial markets tend to become highly irrational.

Take for example the Nasdaq market and the .coms madness of the year 2000. As the technology changed and the world realized that the internet economy is about to change everything, valuations in the Nasdaq market became absolutely irrational. Companies that were found two months ago enjoyed valuations of P/S=100 and P/E=400. Anyone who knows anything about valuation could recognize a clear market bubble. As we mentioned before when the market is becoming irrational in the short-term only technical analysis can explain what is really happening. That is exactly what TCI is designed to recognize, short-term irrationalities. 

The Core of the TCI Formula (2 MAs) 

Two-Moving Averages SystemThe TCI model as any other technical analysis model incorporates several price action date such is open, high, low, close and volume. The TCI formula incurs two main Moving Averages. Each of the two Moving Averages includes tens of different sub-formulas:

■ Moving Average A is generating valuations based on daily price action

■ Moving Average B is correcting the results of Moving Average A (in a daily basis)

Analyzing the TCI Historic Results / Forecasting

TCI is generating daily valuations that may indicate overbought / oversold levels of any financial traded asset at any given time. Based on the row of TCI results excellent charts may be displayed. Furthermore TCI is able to recognize the time pattern and indicate the perfect timing for executing a trade. The time pattern recognition includes Local Highs, Local Lows and possible Trend Reversals.

TCI Forecasts Answer Two Main Questions

Here are the two main questions that TCI is designed to answer:

(i) Has a Financial Traded Asset reached important Overbought / Oversold Levels or not?

(ii) When the perfect timing will occur to enter / exit the market?

Looking Backwards and Forwards –Identifying What to Trade and When to Trade it

The key feature that distinguishes TCI from any other technical analysis model is its ability to turn both backwards and forwards. The two moving averages which are found in the core of TCI can analyze any past time frame and then to forecast any future time frame.

(1) TCI is looking backwards to identify overbought / oversold markets or assets,

(2) TCI is looking forwards to identify the perfect timeframe to enter or to exit an overbought / oversold market or asset.

Looking backwards to identify trading opportunities (WHAT) and looking forwards to identify when to trade them (WHEN)

TCI Specifications

Here are the basic specifications of the TCI system:

(1) It is based on daily price action data including closing, pivots and volatility measures

(2) It contains two moving averages (basic valuation and correction) –Each moving average contains tens of sub formulas

(3) It may be used to analyze any financial market (stocks, indices, bonds, currencies, metals, energy)

(4) It may fit to any time frame

(5) Time frames within TCI follow the Fibonacci sequence of numbers

(6) It can be setup backwards or forwards

(7) It can draw unique historic charts on any time frame

(8) It can provide unique Trading Signals


Adapting to New Market Conditions -The New TCI v.1.2

Since the creation of the first TCI model (1999) the formulas incorporated within TCI are continuously evolving and adapting to new market conditions. Every system should adapt to new market conditions in order to prove reliable in the long-run. For example, at periods when market volatility suddenly booms, all trading systems must re-set their timeframes to fit shorter periods.

TCI Long & TCI Short

The new v.1.2 TCI framework includes two separate Indicators, TCI Long and TCI Short. TCI Long analyzes any market via a long-term perspective and that is important for identifying long-term market cycles. TCI Short is designed to identify short-term cycles and that is important for optimizing entry / exit timing.

TCI Short

Testing TCI Historic Results

TCI results have been heavily tested since 1999. The TCI signals are usually significantly accurate. Here are some general conclusions regarding historic TCI results:

(1) TCI can forecast more effectively high volume activity assets than low volume activity assets

(2) At periods when important fundamental changes occur TCI short is almost useless and only TCI long can be used to identify overbought and oversold levels

(3) TCI is more accurate when analyzing Indices than particular stocks (volume activity is the key)

TCI Signals on TradingCenter.org

Trading signals generated by the TCI model are published on TradingCenter.org. These signals may concern any market such is Forex, Gold, Indices and Stocks. In general the trading signals published on TradingCenter.org are focusing on popular assets as popularity leads to high volume trading and high-volume trading leads to better information and low-cost trading (popular assets enjoy tighter spreads and better trading terms in general).

Popularity adds value in any Financial Market or Traded Asset.


■ Giorgos Protonotarios, Financial Analyst

Founder of Qexpert.com, TradingCenter.org