# DiDi Index Crossover Forex Trading Strategy

Many traders have a competitive character. Therefore, most traders will strive for perfection. They will look for the perfect strategy that will not let them lose. You will be attracted to ambitious strategies that claim to have a win rate of 90% or even more. Some will look for hedging strategies that shouldn't let them lose, which is possible but very risky.

What many new traders don't understand is that trading is all about probability. It's not about having a perfect strategy that should never let you lose a penny. It's not about finding the holy grail of trade. Instead, it's about letting the law of large numbers work in your favor. It's about letting the laws of probability work your way.

One way traders can find high probability settings is by looking for confluence. When many factors point in the same direction, many traders will take the same trading direction, albeit with different hypotheses. While the reasons for trading may be different, the results often seem like a self-fulfilling prophecy. When a trader leads a trade in the same direction, momentum builds leading to a price confirming a trade setup.

The DiDi Index Crossover Forex Trading Strategy is a simple trading strategy based on confluence. It creates trading arrangements based on indicators which are also based on confluence. It also uses complementary indicators that allow traders to make important trading decisions based on high probability trading setups.

## index DiDi

The DiDi index is a trend following indicator derived from a modified moving average. He based his oscillator line plot on the cross of three moving average lines. Traders can modify the indicator by changing the length of the underlying moving average on the “Input” tab.

This is an oscillator indicator that draws two lines in its own window. These two lines can oscillate from positive to negative and vice versa. The blue dodger line represents the faster moving line, while the red line represents the slower moving line.

The direction of the trend is based solely on how the two oscillator lines overlap. When the blue dodger line is above the red line, the trend is considered bullish. On the other hand, if the blue dodger line is below the red line, the trend is considered down. Therefore, a trend reversal signal is generated whenever the two lines cross.

The indicator arrow is a trend reversal signal indicator based on the confluence of several underlying indicators.

## Index Crossover Forex Trading Strategy

The basic indicators are Moving Averages, Moving Average Convergence and Divergence (MACD), Moving Average Oscillator (OsMA), Stochastic Oscillator, Relative Strength Index (RSI), Commodity Channel Index (RSI), Average Directional Movement Index (ADX), and vitality index. relative (RVI).

Given that this indicator is based on a confluence of a large number of widely used technical indicators, the signals generated by it should be very reliable. Based on how the signals are presented, this indicator seems very promising. It can find certain points on the chart where the price reverses. It seems to generate trend reversal signals with high probability.

It indicates a potential trend reversal point by drawing an arrow pointing in the direction of the trend reversal.

This trading strategy trades at the confluence of the DiDi index and the indicator arrow while targeting the long-term trend.

To identify the long term trend, we use the 200 period Exponential Moving Average (EMA). The direction of the trend is based on the general position of the price action in relation to the 200 EMA line as well as the slope of the 200 EMA line. Price action should also confirm the direction of the trend based on its swing point pattern. Signals are considered valid only if they match the long-term trend.

Once the long-term trend is identified, we can now identify valid signals based on the confluence of the DiDi index and the indicator arrows. With the DiDi index, the signal is based solely on the crossing of the blue and red Dodger lines. On indicator arrows, signals are based solely on drawn arrows. These signals must be perfectly matched to be considered valid.