Dolphin Trader forex strategy buys dips in bullish markets while selling rallies in bearish markets. It’s a universal trading strategy that works on every time frame and currency pair. Let’s have a closer look how it works.
- Buying dips in up trending markets.
- Selling rallies in down trending markets.
Dolphin trader consists of two moving averages. A buy zone is created when the short term moving average crosses the long term moving average from below. On contrary, a sell zone is created when the short term moving average crosses the long term moving average from above. See picture below.
The buy zone will be used to trade long signals and the sell zone to trade sell signals.
BUY Signal: Buy zone + Laquerre crosses from below 0.15 back above 0.15
Sell Signal: Sell zone + Laquerre crosses from above 0.75 back below 0.75
BUY Signals: Place stop loss 1 pip below the most recent support level.
SELL Signals: Place stop loss 1 pip above the most recent resistance level.
Total trading risk x 1.5
Dolphin Forex Strategy Trading Example
In the above example, a sell zone was created by the two moving average system – the 5EMA has crossed the 200 SMA from above thus creating a sell zone.
In this case, we will be looking for sell trades only. As you can see, the Laquerre indicator crosses back from above 0.75 back below and we immediately sell the EUR/USD at 1.3127 (at the open of the new candlestick).
We place our stop loss above the most recent resistance level at 1.3191. Total risk (pips): 64
Calculating Target: 64 pips (risk) x 1.5 = 96 pips (TP @ 1.3031)
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