Didi index clean and reversed is a client side VertexFX VTL indicator. It is adapted from the Didi index indicator. In this version the slow line is displayed. The Did index is based on moving averages and show the trend direction. Didi Index CR is used in different ways by traders. When the Index is above 1, the trend is up, when it is below 1, the trend is down. In the original version of Didi Index, Trend is up when the slow line is below 1. Hence the name reversed.
A simple method to trade is when the Didi index cross above the middle line, open a long trade, if it cross below the middle line, open a short position. The middle line is placed at 1. Use a fixed target and stoploss or base stoploss on support resistance levels. As the index shows the trend, one can open positions when pullback happens to a support/resistance level.
MA Method: Moving average type, 1 SMA, 2 EMA, 3 WMA
Applied Price: Price field for indicator calculation, 1 Close, 2 Open, 3 High, 4 Low, 5 Median, 6 Typical, 7 Weighted
Mean Period: Mean MA Period
Slow Period: Slow MA Period
Try different set of parameter values and back test the indicator before starting to trade with Didi Index. The indicator can be coupled with other indicators to generate reliable trading signals.
Didi Index CR.zip (2.4 KB)