The famous brazilian trader and analyst Didi Aguiar created years ago a study with the crossing of 3 Simple Moving Averages called "Agulhada do Didi", then later was also named Didi Index, as a separate indicator.
The period of those SMAs are 3, 8 and 20. As simple as that, this approach and vision bring an easy analysis of market momentum and trend reversal to those traders looking for objective (and visual) information on their charts. Of course, as always, no indicator alone could be used without a clear and pre-planned strategy and the usage of additional filters MUST be used to validate the signals of this indicator.
This version of Didi Index will enhance the brightness of the SMAs on the cross of the Fast and Slow MAs, BUT please note that the analysis MUST be made also with the Medium SMA (ref. axis SMA plotted in white), this is just a visual cue. The REAL crossing is when the 2 SMAs (Fast and Slow) cross themselves also over the very same spot (or almost) of the ref. axis (medium SMA).
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// The author hid the code of this algorithm
- Type: paid
- Language: C#
- Trading Platform: cTrader Automate
- Filename: Demo.algo
- Rating: 0
- Downloads: 0