Dinapoli Target Indicator

The Dinapoli Targets Indicator was developed by Joe DiNapoli, a well-known technical analyst and trader. It was officially introduced to the market in the late 1980s.

What is the Dinapoli Target Indicator?

The Dinapoli Targets Indicator, also known as the DiNapoli Levels, is a technical analysis tool that is used to identify potential levels of support and resistance in the forex market.

The Dinapoli Targets Indicator is a versatile tool for traders who engage in both scalping and trend trading. It is easy to use and evaluates potential entry points, along with calculated take profit levels. The closer the target line is to the entry point, the more likely it is to be reached, additionally, the indicator calculates a stop loss level to manage risks, making it a valuable addition to any trader’s toolkit. Even if it does not align with your specific trading style, it can still be useful for confirming support and resistance levels.

The indicator is based on Fibonacci levels and uses three different calculations to determine the key levels. These calculations include:

  • The first calculation is based on the last swing high or low and the current market price, which is used to determine the key levels of support and resistance.
  • The second calculation is based on the last swing high or low and the current market price, which is used to determine the potential levels of price extension.
  • The third calculation is based on the last swing high or low and the current market price, which is used to determine the potential levels of price retracement.

The Dinapoli Targets indicator is a useful tool for traders that helps to identify potential entry, stop loss and take profit levels. It is based on the identification of local extrema and uses horizontal lines to indicate levels of support and resistance on the chart of a currency pair. The indicator uses different colored lines to convey different information:

  • White line represents the market entry level.
  • Red line represents the stop loss level.
  • The green line represents the original target.
  • Yellow and purple lines represent subsequent targets.

The Dinapoli Targets MT4 indicator key features

  • Compatible with the MetaTrader 4 platform.
  • Customizable settings.
  • Can be applied to any timeframe from 1 minute to daily.
  • Can be used with any forex currency pair.

Dinapoli Targets Strategy

Buy Signal

  • The Dinapoli Targets Indicator sends a buy signal when the market price reaches a level of support, as determined by the indicator’s calculations.
Dinapoli Targets Indicator Buy Signal
Dinapoli Targets Indicator Buy Signal

Sell Signal

  • When the market price reaches a level of resistance as determined by the indicator’s calculations, the Dinapoli Targets Indicator sends a signal to sell.
Dinapoli Targets Indicator Sell Signal
Dinapoli Targets Indicator Sell Signal

Dinapoli Targets Indicator Pros & Cons

Pros

  • It is based on Fibonacci levels, which are widely accepted as a reliable way to determine support and resistance levels.
  • It provides multiple levels of support and resistance, which can help traders make more informed decisions.

Cons

  • It requires a good understanding of Fibonacci levels and technical analysis.
  • It may not be as effective in markets with strong trends.
  • It is important to note that Dinapoli Targets Indicator is just one of the many tools a trader can use to make decisions. Traders should use it in conjunction with other technical and fundamental analysis to make more informed decisions.

Conclusion

The Dinapoli Targets Indicator is a technical analysis tool that can be used to identify potential levels of support and resistance in the Forex market. It is suitable for traders who engage in both scalping and trend trading, as it is easy to use and can evaluate potential entry points and calculated take profit levels. The indicator is based on Fibonacci levels and uses various calculations to determine key levels, stop loss and take profit. It is compatible with the MetaTrader 4 platform and can be used on any timeframe from 1 minute to daily charts, with any currency pair. It is a valuable addition to any trader’s arsenal and can be useful for confirming support and resistance levels.