In the forex market, you would notice that the market moves in waves. Amidst the chaos of the market, price does go up and down on a somewhat rhythmic pattern. Many traders have somehow learned to observe and understand these patterns and have made a fortune out of the market through them. However, predicting the peaks and troughs of these waves are quite difficult especially for beginners.
DSS Wave Forex Trading Strategy will allow you to trade possible reversals using signals that indicate overbought and oversold market conditions. We will buy the market when a blue line appears below 20, and sell it when it appears above 80.
This entry should be in confluence also with the additional indicator, SHI_SilverTrendSig. It gives entry signals based upon fractals. This indicator has the dot colors reversed. The red dots signify the lows in the fractals. This could be an indication of a bullish reversal. While the blue dots signify the highs in the fractals. This could also indicate a bearish trend.
Timeframe -1 minute, 5 minutes, and 15-minute charts
Session - London session, New York session, and Tokyo session
Currency Pair - Any Major Pair
How do you trade with DSS Wave Forex Trading Strategy.
Buy Trade Setup
- A blue dot on the Robby_DSS indicator should be below the 20 line in order to indicate a possible bullish reversal of an oversold market situation.
- The price chart should have a red SHI_SilverTrendSig dot.
- Place a buy order at the close of the candle if both indicators are confluent.
- Place the stop loss at the swing lowest point below the entry candle
- The Robby_DSS indicator shows a red dot.
- On the price chart, a blue SHI_SilverTrendSig dot is visible
Sell Trade Setup
- A red dot on the Robby_DSS indicator should be above the 80 line in order to indicate a potential bearish reversal of an overbought condition.
- The price chart should have a blue SHI_SilverTrendSig Dot.
- Place a sell order at the close of the candle if both indicators are confluent.
- Place the stop loss at the swing, higher than the entry candle.
- The Robby_DSS indicator shows a blue dot.
- On the price chart, a red SHI_SilverTrendSig dot is visible
How to download and install an indicator?
In order to install the indicator on your MT4 platform, you need to follow these steps:
- Click on “Download Indicator” button located at the bottom of the screen.
- Save the file to your computer.
- Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select “DSS Wave Forex Trading Strategy” template to apply it on the chart.
Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.