DIDI Index indicator for finding trend reversal points
DIDI Index indicator The name is due to the Brazilian analyst Odir Aguiar, nicknamed Didi. It is based on three moving averageswhich are known as Didi needles, and are designed to find price reversal points.
DIDI Index indicator is displayed in the basement of the price chart as three lines:
- The red line is the long (Longa) moving average.
- The blue line is the short (Curta) moving average.
- The black line is a moving average, the value of the output of which is always equal to one.
How to use the DIDI Index indicator in trading
Since the DIDI Index indicator consists of moving averages, their crossing is used as signals for entry.
- Buy signal
The blue line crosses the red line from bottom to top, the crossing should be as close to the black line as possible, even better to wait for its crossing as well. Entry into the position at the opening of the next candle.
- Sell signal
The red line crosses the blue line from bottom to top, respectively, similar to buying, the crossing should be as close to the black line and it is desirable to wait for its crossing as well. Entry into the position at the opening of the next candle.
DIDI Index indicator has sufficiently accurate trading signals, especially with strong trend movement. We recommend to use this indicator together with the filters that will allow to avoid false entries and will also increase the accuracy of determining the market entry point.
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