Didi Index Indicator

Didi Index Indicator

The Didi Index indicator for MT4 measures the momentum in the market and then generates buy/sell signals. Try now!

The Didi Index indicator for MetaTrader 4 is a forex trading indicator that measures the strength of a financial asset and also generates buy/sell signals when the price is at optimal zones. The indicator’s algorithm essentially tracks the difference between the trading volume and the price of an asset.

Furthermore, the indicator comes with two moving averages that expand and contract as the market volume of an asset increases/decreases. The blue line above the zero line indicates more bullish momentum, while bearish momentum is depicted when the blue line is sustained below the zero line. Besides, the two lines are also used to generate buy/sell signals when they cross over.

Buy and Sell Signal of Didi Index Indicator

The above image shows the action of the Didi Index indicator on the EURUSD currency pair. The blue and red lines show the difference between the trading volume and the price; they are used to generate a buy or sell signal.

A buy signal is valid when a cross-over between the blue and red line happens above the centerline of the indicator. Conversely, a sell signal should be considered only when a crossover happens between the blue and red line below the zero line.

Furthermore, you may hold a buy/sell position for more profits whenever the blue line is sustained above/below the zero line, for instance. However, the indicator’s signals are best suited for short-term trades.

Conclusion
The Didi Index indicator for MT4 is generally suitable for scalping and day/intraday trades. Moreover, you may also use it with price action/other technical indicators for better efficiency. Finally, it is free to download.