Didi Needles - Threshold Difference Filtering with MA - MetaTrader 5 Script - MT4/MT5 Resources

The author of this strategy/indicator is the famous Brazilian technical analyst Odir Aguiar, who coined the famous "Didi Needles", which consists of looking for the intersection/conjunction of 3 moving averages with periods 3, 8 and 20. To allow users to experience multiple variations, we have opened up user input for this indicator: period, smoothness and price type of MA.

There are many variations of the Didi Needle (i.e. Didi Index, etc.). This version of the indicator looks for the intersection or confluence of these 3 moving averages within the body of the candle, all information is within the chart itself (no sub-windows).

In order to avoid signaling on weak trends, the ability to set thresholds considering the "tendency" of "crossovers" was added to the indicator. If the threshold is exceeded, a buy/sell signal is fired in one of the 2 buffers (bufferBuy/bufferSell). You can check the code to see that these signals are currently using the low[] and high[] values ​​of the current candle. If you are testing in a pluggable EA, you can use it with Ask/Bid prices.

Since there are multiple markets - using points, prices, etc. - the "trend" calculation is just a percentage value of the difference between the 3MA and the 20MA. Moreover, in order to discover the optimal threshold for the symbol, an additional buffer (bufferDiff) was added, enabling the user to inspect each candle with the mouse using the data window and see the real-time calculation on the chart/data window:

Therefore, for each symbol, the user can place the studied minimum threshold on the indicator input to filter out buy/sell signals.

Hopefully this indicator will help traders around the world.

As always, play plenty with other parameters, timeframes, confirmation indicators, price action techniques, and more.

Longevity and prosperity.

=== Update: Just updated the title to better reflect the filtering type. We plan to release another version of Didi Needles with other types of filtering capabilities... ===

=== Update (January 2018) - v1.1 - Corrected a small bug in the code (damn comma!) Thanks @GuilhermeAdams ;) ===

Attachment download

📎minions.didineedles.mq5 (23.38 KB)

Source: MQL5 #22131