The Didi Index is an oscillator based technical indicator designed for trading in the foreign exchange market. It is a powerful Indicator to trade in trending markets and to determine market reversals. It is used upon short term, medium term, and long term Moving Averages (MA) and provides insights to find the market turning point. It has two components, a green line which is the longer term CCI and a yellow line which is a short term CCI.
The yellow line responds to the trends faster than the green line - so when the market turns strongly Bullish the yellow line starts moving upwards faster than the green line. Likewise, when the market turns strongly Bearish the green line starts moving downwards faster than the yellow line.
The DIDI Index is calculated using the short term, medium term, and long term Moving Averages, the green line is calculated by dividing the short term Moving Average by the medium term Moving Average, likewise, the yellow line is calculated by dividing the long term Moving Averages by the medium term Moving Averages.
BUY - Traders can Buy when the green line is above the yellow line.
SELL - Traders can Sell when the green line is below the yellow line.