Didi Index is a technical indicator that is designed to trade in the foreign exchange market. It is oscillator based technical indicator. The Didi index is extremely simple to use. The Didi index indicator helps you to know the strengths of bulls and bears. Besides that Didi index indicator helps you to make buy/sell decisions. The Didi index can be used to trade in lower time frames as well as higher time frames but you are recommended to trade in time frames higher than 15 minutes.
One thing you should be careful is sometimes this indicator generates false signal if you don’t become careful. You should be able to choose those trading signals which have edges among others. This indicator will generate good signals only if you trade under certain market conditions.
When Didi index is correctly installed in your trading platform, your chart should look like this:
- Didi index
Didi index consists of two oscillators. One of the oscillators is blue and another one is red. The crossovers of these two oscillators provides buying and selling signal. The basic way to use this indicator is- when the blue oscillator is above the red oscillator, it is an indication of uptrend market whereas when the red oscillator is above the blue oscillator, it is an indication of a downtrend market.
Buying Conditions Using Didi index.
- Market should be up trending.
- The blue oscillator should cross above the red oscillator.
- Place your long position as soon as above conditions are met.
- Place your stop loss just below the recent swing low.
- Take your profit when the red oscillator crosses above the blue oscillator.
Selling Conditions Using Didi index.
- Market should be down trending.
- The red oscillator should cross above the blue oscillator.
- Place your short position as soon as above conditions are met.
- Place your stop loss just above the recent swing high.
- Take your profit when the blue oscillator crosses above the red oscillator.
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