Forex trading system “DOSR Trading System”
This simple trading system is based on the principle of determining the support and resistance levels of the daily candlestick on the price chart. It’s spelled “Determine of support and resistanse” (DOSR) in English. In principle, this system can be used for any currency pair, but it works best on EUR/USD, GBP/USD, GBP/JPY. The figure below shows the principle of determining the support and resistance levels.
The lines are drawn according to the levels of opening and maximum of the day, if it is bullish. Similarly, when the movement of the line is bearish, the lines are drawn on the levels of opening and minimum of the day. The other values are ignored. In this system this process is automated with the help of the “DOSR” indicator.
Trading itself is carried out on charts M5 and M15, depending on the volatility of the pair. First, we look at the daily chart to see the direction of the market movement. You can see here that the previous day was a bull’s-eye. The pair GBP/JPY is very volatile, so move on to chart M15. We set the stoploss for this pair at 50 points. Take Profit is equal to the number of stop points. To increase your earnings, you should open a position of 2 conditional lots, close one lot when you reach the profit, and move the stop of the second one to the breakeven level. In the case of the bear market, we do the same. At a break-down of the support, we open a position to sell on the next candle. Recommended stop and profit sizes: EUR/USD – 20 points, GBP/USD – 30 points, GBP/JPY – 50 points.