For trading to be successful, you need a reliable system that can spot trends and set up good trades. The Dragon Fire Trend Trading System is a system based on the PLT indicator and uses I-Gentor LSMA filtering. Its template is intended to be simple and not cause confusion on the charts. This article will provide an overview of the Dragon Fire Trend Trading System and examine how it works in the forex market.
What is the Dragon Fire Trend Trading System?
The Dragon Fire Trend Trading System is a trend-following swing trading strategy. This technique uses the PLT indicator and the I-Gentor LSMA filter to spot trends and provide trade setups. The template for the system is meant to be clear and simple so that there are no misunderstandings and trading decisions can be made quickly and easily. Traders need to use the Dragon Fire Trend trading System on a time frame of M30 or above.
Dragon Fire Trend Trading System Strategy
Traders can use this system to analyze any Forex G10 currency pair, as well as gold and crude oil. Traders should use the PLT indicator (periods 3 and 7) in multiple timeframes. When the indicator gives a green dot signal, traders may open a long position and confirm using the I-Gentor LSMA and EMA. In contrast, when the indicator gives a red dot signal, traders may go short and confirm their decision using the I-Gentor LSMA and EMA red and yellow lines. To close a position, traders can look for the opposite dot signal or set a pre-determined Take profit of 1:1-1.5 Stop Loss Ratio. Stop-loss orders should be placed above or below the PLT indicator’s red line plus the spread. Despite the fact that the Dragon Fire Trend Trading System is an efficient approach for trading the markets, it is essential to remember that trading always involves the possibility of financial loss. Before going into trades, traders must exercise caution and carry out an exhaustive analysis. Using adequate risk management techniques, such as stopping loss levels, and not risking more than you can afford to lose is also vital.
- Look for a green dot signal on the PLT indicator, along with confirmation from the I-Gentor LSMA and EMA. This indicates an opportunity for a long position.
- You may open a long position, placing your stop-loss orders directly below the red line of the PLT indicator or according to your money management strategy.
- Traders may exit their positions when the opposite dot signal appears on the PLT indicator, indicating a trend reversal.
- Look for a red dot signal on the PLT indicator, as well as the I-Gentor LSMA and EMA red and yellow lines that confirm the signal. This indicates a short position opportunity.
- You may open a short position with stop-loss orders above the PLT indicator’s red line or in accordance with your money management strategy.
- When the opposite dot signal appears on the PLT indicator, signaling that the trend is reversing, traders may exit their positions.
Dragon Fire Trend Trading System Pros & Cons
- The system is applicable to multiple Forex G10 currency pairs, as well as gold and crude oil, presenting traders with a wide variety of trading options.
- This method may be used by traders with a strong understanding of market trends and retracements.
- It relies on a straightforward and simple strategy.
- The Dragon Fire Trend Trading System is a swing trading method that may not be ideal for scalpers or day traders.
- The system depends largely on the PLT indicator, which may not deliver reliable indications under all market conditions.
- It is possible to generate false signals, resulting in significant losses.
- The system’s simplicity may restrict its capacity for customization and adaptation to specific trading situations.
The Dragon Fire Trend Trading System is a powerful swing trading strategy that identifies trends and determines optimal trade setups. This system employs the PLT indicator filtered by I-gentor LSMA and is intended for usage with time frames M30 and above. This system’s template is concise, avoiding misunderstanding and facilitating easy and quick trading decisions. Traders may apply this strategy to trade the forex markets by adhering to the conditions to buy, sell, and close positions.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.