"Threaded Needle Cross" (Didi Index) For ThinkOrSwim

[Beltrame1]

updated version here: https://usethinkscript.com/threads/...-didi-index-for-thinkorswim.4793/#post-123468


I found this Didi Index/Indicator. It seems Odir Aguiar (the Brazilian creator) flattened the 8 simple moving average and made it the "zero line" if I am not mistaken. I believe the picture below shows it
The idea is a stacked MA (thread) goes through the body of the same candle (Needle) including the wicks.

So for a bullish signal it would be: 3 above the 8 and 8 above the 20 and the inverse for a bearish move (if looking at it on the chart with the candles).

If the cross happens on the higher time frames (depending on the volume) it could take several days to trigger the move! From what I have noticed if the cross happens on the Daily, 4H, 1H it will take much longer to trigger, and sometimes even the 30M will take 2 days to move (pop), then the 15M and 5M, are more for intraday, but may fake you out.

He explains in one of his videos that he views the straight line as a fence separating 2 bulls (the other 2 MA`s) and when they run away from each other and there is a perfect cross, price runs big
The MA`s are 3 in blue, 8 in black and 20 in red.

He mentions in one of his videos that he also uses the DMI for trend confirmation and Bollinger Bands as well.

Odir Aguiar

Indicator developed by the Brazilian and analyst Odir Aguiar (Didi), consists of "Moving Averages", famously known as "Didi needles", where it allows the viewing of reversal points.

The concept is very simple, when you enter 3 Moving Averages on display, a period equal to 3, one equal to 8 and the other equal to 20, then the formation of the indicator that works in axis or line center equal to 0 (zero) appears. ). Moving averages must intersect when approaching line 0.

Pictures to illustrate it https://www.mql5.com/pt/code/1725

Didi_index (Lower Study)

input price = close;
input short_length = 3;
input mid_length = 8;
input long_length = 20;

def sEMA = ExpAverage(price, short_length);
def mEMA = ExpAverage(price, mid_length);
def lEMA = ExpAverage(price, long_length);

plot s = sEMA / mEMA - 1;
plot l = lEMA / mEMA - 1;

s.AssignValueColor(Color.GREEN);
l.AssignValueColor(Color.MAGENTA);

plot zeroline = 0;
zeroline.AssignValueColor(Color.GRAY);

 

[henry1224]

@Beltrame1 I added Clouds

declare lower;
input price = close;
input short_length = 3;
input mid_length = 8;
input long_length = 20;

def sEMA = ExpAverage(price, short_length);
def mEMA = ExpAverage(price, mid_length);
def lEMA = ExpAverage(price, long_length);

plot s = sEMA / mEMA - 1;
plot l = lEMA / mEMA - 1;

s.AssignValueColor(Color.GREEN);
l.AssignValueColor(Color.MAGENTA);

plot zeroline = 0;
zeroline.AssignValueColor(Color.GRAY);
AddCloud(s,zeroline,Color.Green, color.yellow);
AddCloud(L,zeroline,Color.Magenta, color.yellow);

 

[quijanoj44]

@Beltrame1 , here is a scanner when the S line crosses the L line, and viseversa:

declare lower;
input price = close;
input short_length = 3;
input mid_length = 8;
input long_length = 20;
input Show_Lines = yes;

def sEMA = ExpAverage(price, short_length);
def mEMA = ExpAverage(price, mid_length);
def lEMA = ExpAverage(price, long_length);

def S = sEMA / mEMA - 1;
def L = lEMA / mEMA - 1;

#s.AssignValueColor(Color.CYAN);
#l.AssignValueColor(Color.MAGENTA);

plot zeroline = 0;
zeroline.AssignValueColor(Color.GRAY);
#AddCloud(s,zeroline,Color.Green, color.yellow);
#AddCloud(L,zeroline,Color.Magenta, color.yellow);


#def Bullish =  if Show_Lines == yes then S crosses above L else no;
def Bullish = if S crosses above L then 1 else double.NaN;
plot UpArrow = Bullish;
UpArrow.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_UP);
UpArrow.AssignValueColor(Color.CYAN);


#def Bearish =  if Show_Lines == yes then s crosses below l else no;
def Bearish = if S crosses below L then 1 else double.NaN;
plot DownArrow = Bearish;
DownArrow.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
DownArrow.AssignValueColor(Color.MAGENTA);

So basically, the scan is identifying where the arrows are plotted:

 

[Santhosh]

Thanks. Does this Repaint?

 

[rad14733]

Thanks. Does this Repaint?

The Didi Index does not repaint... It can also be used on all timeframes...

 

[ApeX Predator]

@Beltrame1 The way that I get around with MTF and Scan. Follow along the steps

1. Past the following Code into a Study, not in the ThinkScript Editor in Scan Tab.
2. Go to Scan tab clear out all Filters.
3. Add Study as a filter
4. Go to thinkscript editor and past the following line
5. EMAScan().Bull is true within 2 bars (for Bull case) or EMAScan().Bear is true within 2 bars (for Bear case)
6. select a desired time frame, Say 15m checkbox on/off depends on when you scanning and your trading strategy.
7. Repeat step 3 - 6, only select a different timeframe for each instance, for as many instances as you want.
8. Hit Scan.

Have Fun.

PS: I haven't verified the indicators conditions, but I think got them right, and If I do, I think the original script has the "L" and "S" reversed.

#EMAScan
# SuryaKiranC : Scanner Created on Request

input price = close;
input short_length = 3;
input mid_length = 8;
input long_length = 20;

def sEMA = ExpAverage(price, short_length);
def mEMA = ExpAverage(price, mid_length);
def lEMA = ExpAverage(price, long_length);

def s = sEMA / mEMA - 1;
def l = lEMA / mEMA - 1;

def Bear = l > 0;
def Bull = s > 0;

plot scan = (Bull or Bear);

EMAScan

 

[Tradergrynch]

This indicator is just a tad bit off because the Didi Index uses RSI to determine Bullish and Bearish. I could be wrong though. Here is my interpretation of the indicator.

declare lower;
input price = close;
input short_length = 3;
input mid_length = 8;
input long_length = 20;

def sEMA = ExpAverage(price, short_length);
def mEMA = ExpAverage(price, mid_length);
def lEMA = ExpAverage(price, long_length);

plot s = sEMA / mEMA - 1;
plot l = lEMA / mEMA - 1;

s.AssignValueColor(Color.GREEN);
l.AssignValueColor(Color.MAGENTA);

plot zeroline = 0;
zeroline.AssignValueColor(Color.GRAY);
AddCloud(s,L,Color.Green, color.RED);




def R= RSI();

#def Bullish = if Show_Lines == yes then S crosses above L else no;
def Bullish = if S crosses above L and R > 50 then zeroline else double.NaN;
plot Up= Bullish;
Up.SetPaintingStrategy(PaintingStrategy.points);
Up.AssignValueColor(Color.CYAN);
Up.setlineWeight(3);



#def Bearish = if Show_Lines == yes then s crosses below l else no;
def Bearish = if S crosses below L and R < 50 then zeroline else double.NaN;
plot Down = Bearish;
Down.SetPaintingStrategy(PaintingStrategy.points);
Down.AssignValueColor(Color.MAGENTA);
Down.setlineWeight(3);

 

[Beltrame1]

Thanks @ApeX Predator and @Tradergrynch

 

[apdusp]

the original Didi Index is based in simple moving average of 3,8,20 periods. It is part of Didi trading system which is more complex, but in my experience, as complete a trading system you can get and quite precise (I took his course). It uses in addition to the Didi Index, BollingerBands(8,2,-2), ADX/DI(8),Stochastic(8,3) and Trix(9,4) and it has clear rules for entering and exiting (doesn't use volume). You can have a glimpse to his setup in www.agulhada.com when clicking on the specific timeframe it is pointing the needle. the only problem for many could be the language as it is in Portuguese but it is quite simple to understand. you will find many youtube videos on Didi system. attached is my chart (working process) of Didi setup
shared chart link: http://tos.mx/OLuPHGd

 

[apdusp]

particularly interesting to me was the way this indicator colored the background,
https://usethinkscript.com/threads/redk-everex-effort-versus-results-explorer-for-thinkorswim.14896
which I just copied the idea to add to some indicators I use. it really facilitates the visual, more so when entry and exit criteria depends on a few indicators I am still polishing
shared chart link: http://tos.mx/xwIZNl3

 

[apdusp]

While I was reviewing this thread, I realized that all the scripts published here use exponential moving average for the construction of Didi Index.

I just want to observe that the original Didi Index, as defined by Didi himself is constructed with simple moving averages instead. In my experience, as part of his trading system, the original version works better for real trading. Unfortunately, all his videos are in Portuguese, even when he lives in USA, which makes it difficult for many people to understand the methodology.

one of the clearest videos explaining the method

though it is in Portuguese but still you can get an idea.

 

[Kitchasap]

particularly interesting to me was the way this indicator colored the background,
https://usethinkscript.com/threads/redk-everex-effort-versus-results-explorer-for-thinkorswim.14896
which I just copied the idea to add to some indicators I use. it really facilitates the visual, more so when entry and exit criteria depends on a few indicators I am still polishing
shared chart link: http://tos.mx/xwIZNl3
View attachment 19821

Thank you for sharing the set up!

 

[apdusp]

btw, if you change the periods of this indicator to 3,8,20 it is a nice complement to the standard Didi system pointing entry/stop levels. maybe some other changes can refine the display of the indicator

https://usethinkscript.com/threads/loken-v4-bullish-smart-money-for-thinkorswim.16750/post-131952

 

[Nomak]

btw, if you change the periods of this indicator to 3,8,20 it is a nice complement to the standard Didi system pointing entry/stop levels. maybe some other changes can refine the display of the indicator

https://usethinkscript.com/threads/loken-v4-bullish-smart-money-for-thinkorswim.16750/post-131952

what exactly is 3,8,20 on the Loken indicator?

 

[apdusp]

what exactly is 3,8,20 on the Loken indicator?

I referred to LOKEN's "Tribute to David Paul" indicator where average periods are default at 21, 55, 89 , so I suggested to change respectively for 3, 8, 20 periods as those are used in Didi Index (part of Didi trading system), for those that follow that system as it adds visually, including those that prefer to use directly the 3 moving averages instead of the Didi Index.