Hello dear fellow traders! Today I will introduce you to one modern and interesting indicator DIDI Index. The indicator shows reasonably accurate price reversal points.
The DIDI Index indicator was created by the Brazilian analyst Odir Aguiar (Didi), the calculation of which is based on moving averagesor more precisely, the three moving averages are known as the famous Didi needles.
The indicator is displayed in a separate window on the chart as three lines. With variable values, only two moving averages with periods of 3 and 20 are displayed. The value of a moving average with a period of 8 is used only in the indicator algorithm, it is displayed on the chart as a straight line (level “1”), to be more precise, its output parameter is always equal to 1 , but the value of moving averages with a period of 3 and 20 directly depends on it.
We will not bother with a detailed description of the formulas and the algorithm for calculating the indicator values, we will go straight to its settings. Download the indicator from the link at the end of the article and install (installation instruction).
Curta, Media, Longa – value of the period of short, average and long moving averages, the default value is 3, 8 and 20, respectively.
CurtaAppliedPrice, MediaAppliedPrice, LongaAppliedPrice – select which price value to apply the moving averages calculation to, by default Close (at the close of the candle).
CurtaMethod, MediaMethod, LongaMethod – method for calculating moving averages, by default Simple (simple).
Red line – long (Longa) moving average.
Blue line – short (Curta) moving…
Black line – moving average, let me remind you that its output value is always equal to one.
DIDI Index Indicator Signals
The indicator has a standard set of signals – the intersection of moving averages.
The blue line crosses the red line from the bottom up, the intersection should occur as close as possible to the black line (level 1), it is better to wait for it to cross. Entry for the opening of the next candle:
The red line crosses the blue line from the bottom up, respectively, similarly as with purchases, the crossing should occur as close to the black line as possible and it is advisable to wait for it to cross. Entry for the opening of the next candle:
Exit from the position in both cases, respectively, with an opposite signal.
Undoubtedly, the DIDI Index indicator is interesting, its signals are quite accurate, especially with a strong, obvious trend movement. Before using, I recommend running the indicator through history to find out how accurate its signals are on a particular currency pair. In the next article I will introduce you to a strategy based only on one indicator DIDI Index, in fact, the article itself – DIDI Trading Strategy…
That’s all for today. Happy using the indicator! Goodbye.
Download indicator for mt4 terminal – Didi Index
Best regards, Evgeny Bokhach
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