Didi index, 2 confirmations in oscillator

Created by the Brazilian analyst Odir Aguiar (Didi), it consists of plotting the simple moving averages of 3, 8 and 20 periods on a chart of any interval to observe the reversal points.

The method works better with high volume and good liquidity of assets.

Logic of the algorithm:

• Plots the moving averages in the oscillator chart (short series: SMA3-SMA8, long series: SMA20-SMA8)
• Seeks for the first signal: when the short series crosses the long series
• Seeks for the first confirmation: when the short series crosses over the zero line
• Seeks for the second confirmation: when the long series crossed under the zero line
• Fires if the scenario remains stable and the short line points up and the long line points down

Configuration:

• Pre-configured for the candle of 1h (do not go below 30m)

Hints💡

• For an additional confirmation, combine it with a volume increase indicator.