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:
- Verifies if the 3 averages are inside the last candle
- Fires a bullish signal when SMA3 > SMA8 and SMA8 > SMA20
- Pre-configured for the candle of 1h (do not go below 30m)
- For an additional confirmation, combine with a volume increase indicator.