What I did was creating a script file named titleRename.tcsh with the following code:
#!/bin/tcsh -f
set fullpath = "`pwd`\a"
set newTitle = `echo $fullpath | awk -F / '{OFS="/"; if(NF > 2){printf $(NF-2);printf "/"; printf $(NF-1); printf "/"; print $NF;}else print $0}'`
echo "\033]0;$newTitle"
It splits the pwd with awk, getting only the last 3 directories, and then it prints to the tab name. Then I added in the .alias file the following:
alias cd 'cd \!*; <dir of script file>/titleRename.tcsh'
Now the title name changes automatically whenever I cd to a different directory :)