Forex Strategy DOSR
In Strategy Forex DOSR , are trading currency pairs: EURUSD, GBPUSD, GBPJPY, a 5-minute time interval (M5), while analysis was performed on day interval when using indicator forex DOSR mq4 to trading platform MT4 or self.
The full name of forex strategy - The Daily Open Support and Resistance Technique, which means "Technical Trading support and resistance, as defined in the daylight opening".
Identify support and resistance levels on the last trading day candle.
Open schedule and go to the daily time frame.
Option 1 - Bullish candle (closing price of the candle above the opening level of the candles).
You should not pay attention to the low of the day and the closing price of the candle.
High of the day at 0.6733.
The opening price of the day at 0.6684.
Draw a horizontal line through the maximum (resistance at 0.6733) and through an opening (support at 0.6684).
Option 2 - Bear candle (the closing price of the candle below the opening level of the same candles).
You should not pay attention to the daily maximum and the closing price of the candle.
The opening at 1.6276.
At least at the level of 1.6212.
Draw a horizontal line through the opening level (resistance level at 1.6276) and a minimum (support level at 1.6212).
The entry and exit from the market of forex strategy DOSR.
deal to buy:
discovered long trading position as soon as the 5 minute candle crosses and closes above the resistance level specified by us.
deal for sale:
open a short trading position as soon as the 5 minute candle closes below the crosses and a certain level of support for us.
close trading positions as soon as the closing of a 5-minute candles exceeds a certain value our stop-loss. For example, if your safety stop-loss for the currency pair EURUSD is 20 points and at the close of the candle breaks this level , then we close the trade deal must!
take profit (profit target):
This forex strategy DOSR ratio of risk to profit is 1:1, that is, if your safety stop-loss is 20 points, then the profit target should be 20 points. If you wish to make, for example, 2 times more, then you need to increase the size and position to be opened 2 times. After achieving the first goal of the Take-profit in 20 points, move the safety stop-loss to break even, to allow profits to grow, this will be quite logical to use the Trailing Stop .
If you are restricted in their trade in time - do the following:
Trading position to buy: Set aside an order to buy at a certain resistance to the previous day candles with a stop loss and take-profit.
Trading position for sale: Set aside an order to sell at a certain level of support for the previous daily candle with a stop-loss orders and take-profit.
Recommended values ??of stop-losses and profit targets for the currency pairs:
EURUSD - 20 points
GBPUSD - 30 points
GBPJPY - 50 points
Example trade forex strategy DOSR on the currency pair EURUSD:
1st red oval - in this case there was no open trading position on the sale, although the price on the chart and reached the level of support for the previous trading day at 1.3117, as happened close below the minimum. Opening a trading position was a bit later, once at the next price move down, she crossed the level of support, and a 5-minute closing price was below the candle at this level. After that, the market price has gone down not, as expected, and up. The result has been achieved the level of stop-loss orders, but, candle closing above this level did not happen, so the trading position is still open . Next 5-minute candle was sent down, and soon reached the price level of TR. Trading position was closed with a profit of 20 points.
This forex strategy - DOSR differs from the traditional strategy of Forex " breakdown of the high-low the previous day " in that it provides the best entry point into the market (although it is slightly more risky). But given the fact that sometimes between the maximum and minimum distance is sufficiently large, then you are in the traditional trade forex strategy, missing potential points of profit, and with this strategy, forex you can earn a lot more pips.
Download Forex Indicator : DOSR.mq4