The DIDI Index: Comparing Short- and Long-Term Moving Averages

Summary

This post adapts the DIDI Index, attributed to Brazilian trader Odir Aguiar, for use in ProRealTime. It plots two percentage comparisons against a middle moving average: a longer-period average divided by the middle average, and a shorter-period average divided by the middle average. A horizontal zero line provides a reference for when each comparison is above or below the middle average. The example uses periods of 3, 8, and 20 bars for the short, middle, and long averages.

The author describes the indicator as resembling MACD while cautioning that its lines and interpretation are not identical. The post labels the long-period series red and the short-period series green, but offers no explicit entry or exit rules, tested results, or evidence that either line predicts price movement. It encourages testing and optimization, yet supplies no settings comparison or validation procedure. Traders would need to decide how to interpret the lines and assess the indicator across instruments and timeframes before using it in a strategy.

Key ideas

• The DIDI Index compares short- and long-period moving averages with a middle-period average.
• Each series is expressed as a percentage difference from the middle average.
• A zero line marks where a comparison is equal to the middle average.
• The example uses periods of 3, 8, and 20 bars and distinguishes the series by color.
• The post gives no tested trading rules or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.