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 (0-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 0-axis (medium SMA). Look for the screenshots for more details.
SETTINGS
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Fast MA period (3=Classic)
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Medium MA period (8=Classic) – This is the 0-axis on the indicator window
- Slow MA period (20=Classic)
- Smoothing type for the MAs (SMA=Classic)
- Type of Price to be used on calculations (Close Price=Classic)
If you like this indicator, all I am asking is a little Review (not a Comment, but a REVIEW!)…
This will mean A LOT to me… And this way I can continue to give away Cool Stuff for Free…
With No Strings Attached! Ever!
Live Long and Prosper!
😉
