This indicator and its use were developed by Brazilian
trader and analyst Odir Andrade Aguilar (nickname Didi) based on the
It is based on the ratio of moving averages with periods 3 (FAST) and
20 (SLOW) with an 8-period moving average (default settings
If the SLOW and FAST moving averages are close to each other
close to the 1.0 line (the white line in the center), this indicates a
buy or sell on the next candle. This signal is known as
- A buy entry occurs when the FAST line moves UP and the SLOW line moves DOWN, increasing the volume.
- A sell entry occurs when the SLOW line moves UP and the FAST line moves DOWN, increasing the volume.
It should be noted that:
- these points should only be used to start trading. Other indicators are used for the output;
- the signals work best with assets/futures with high volume and liquidity.