14# DOSR Trading System

DETERMINE THE SUPPORT AND RESISTANCE LINES ON LAST DAILY CANDLE 

 

Example on how to draw the Support and Resistance lines:

Open your chart and switch to daily time-frame

Scenario 1 – Bullish candle (price close above Open)

Ignore the Low of the Day and Closing Price

High of the Day 0.6733

Open Price 0.6684 

 

 

In the picture below DOSR Trading System in action.

*Draw the line on High (0.6733 as Resistance) and draw the line on Open (0.6684 as Support).

Scenario 2 – Bearish candle (price close below Open)

Ignore the High of the Day and Closing Price

Open 1.6276

Low 1.6212 

*Draw the line on Open (1.6276 as Resistance) and draw the line on Low (1.6212 as Support)


ENTRIES AND EXITS

If you have the time to look at the chart… do the following:

Long

Enter the trade when the 5-minute bar penetrates and close higher than the Resistance level.

Short

Enter the trade when the 5-minute bar penetrates and close lower than the Support level.

Stop-Loss

Exit the trade when the 5-min bar closing price is greater than your stop-loss value. For example if your stop-loss on EUR/USD is about 20 pips and if it closes more than that, exits the trade.

Take-Profit

My risk-reward ratio is 1:1 so if I set my SL to 20 pips, my TP would be 20 pips. However, if you want to make more pips than that, I recommend entering with 2 or more lots and then exit the first TP target of 20 pips then move your SL to breakeven in order to let the winner runs.

If you don’t have the time to look at the chart… do the following:

Long

Set a buy order at the Resistance level with a SL and TP target.

Short

Set a sell order at the Support level with a SL and TP target.

Stop-Loss

Your preset SL target will handle itself.

Take-Profit

Your preset TP target will take care of itself.

Recommended Stop-Loss and Take-Profit target

EUR/USD – 20 pips

GBP/USD – 30 pips

GBP/JPY – 50 pips 

Trading System: DOSR
DOSR.zip
Compressed Archive in ZIP Format 768 Bytes

 

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Comments: 1
  • #1

    claudio (Wednesday, 27 July 2016 10:49)

    Hi

    Can someone tell me which time chart to place the order? I understand to watch the 5 minute charts till the bar go though the S/R and close.... right?
    Please advise
    send an email if you can

    claudiobrunotti56@gmail.com

    Thanks

    Regards