Black Dog Forex System

The Black Dog Forex System helps forex and stock traders determine price pullback zones in trend-following markets. It also generates trend-reversal signals and highlights swing trading opportunities.

The developer of this system combined moving averages with momentum signals for projecting potential trend-following price movements. Besides, the MA channel guides you through dynamic trendline support/resistance levels.

In this guide, we’ll explain how you can determine the market bias and anticipate accurate trading entry points using the Black Dog Forex System.

What is Black Dog Forex System?

The Black Dog Forex System portrays a trend-based trading strategy developed for MT4 platforms. It enables you to examine possible trading opportunities on price pullbacks during an on-trend market condition.

Technically, the Black Dog Forex is an MTF system. It means the system is applicable to all the timeframes available in MT4 platforms. So, apart from day trading or scalping, you can also use it to determine long-term trading opportunities. While reviewing this system, we’ve found it more steady above H1 (hourly) timeframe charts.

Additionally, this forex trading system is widely accepted by beginner traders due to its simplicity of chart presentation compared to advanced trading strategies.

What is Black Dog Forex Trading Strategy?

The Black Dog Forex System applies the Color MA BDV8 Channel based on 50 MA high and low. These MAs are employed to identify and filter the market’s current trends. The price typically closes higher than these MA levels during uptrends. Conversely, the price moving below the channel indicates a bearish market trend.

Black Dog Forex System Chart Setup
Black Dog Forex System Chart Setup

Whenever the price breaks the dynamic trendline, the moving average line changes colors to confirm a trend reversal. It turns green in an uptrend market and switches to a maroon color during downtrends. Besides, it becomes yellow to signal a flat trend. The system also shows blue/red arrows to confirm a breach of the dynamic support/resistance zones.

The Black Dog Forex System includes MACD to filter the trend signals generated by the Color MA BDV8 Channel. When the MACD value rises over zero, the market moves in an uptrend direction. The market momentum is considered bearish when the MACD has a negative value.

Buy Signal

  • The price moves above the Color MA BDV8 Channel.
  • A blue arrow appears below the moving average levels.
  • Both moving average lines turn green.
  • MACD shows a positive value.
  • Trigger buy above the higher moving average level.
  • Stop-loss below the lower moving average level.
Black Dog Forex System Chart Buy Signal
Black Dog Forex System Chart Buy Signal

Sell Signal

  • The price drops below the Color MA BDV8 Channel.
  • A red arrow appears above the moving average levels.
  • Both moving average lines turn into a maroon color.
  • MACD shows a negative value.
  • Trigger sell orders below the lower moving average level.
  • Stop-loss above the higher moving average level.
Black Dog Forex System Chart Sell Signal
Black Dog Forex System Chart Sell Signal

Conclusion

The Black Dog Forex System is mostly admired by beginner-level traders because of its plain and simple demonstration of trend-following trading opportunities. We’ve also found this system effective in eliminating market noises caused by irregular trend movements or choppy market conditions. Apart from forex and stocks, this system also runs on commodities, indices, and cryptocurrency charts within MetaTrader 4 platforms.