You may have experienced several trading indicators. Most of them might have disappointed you as well. This article will shed light on the Forex Doll System, which is not an indicator but comprised of several indicators to form a complete forex trading system.
What is the Forex Dolly System?
The Forex Dolly System is a trend-following trading strategy for MT4 platforms used for daily and intraday trading. For generating buy/sell signals, it combines fast and slow EMAs with MACD and Stochastic indicators. Let’s take a look at the system.
MA2Signal arrows are also included in this indicator, which shows price breakouts at multiple exponential moving average-defined support and resistance levels.
Furthermore, this MT4 system provides market session times, price level summaries, and trend indicators. You can schedule market observation times using session times.
While the Price Level Summary gives you real-time updates on key price levels, the Price Level Summary also provides you with historic price data.
How to trade Forex Dolly System?
The system is comprised of several indicators. However, the system’s key components are Fast EMA and Slow EMA. You can trade the bearish and bullish crossovers of both EMAs. Moreover, the system includes oscillators like Stochastic and MACD, alerting users when a trend reversal occurs.
You do not have to switch the timeframes. The system alerts you if there is an opportunity in a certain timeframe. The bottom of the chart displays DIGISTOCH and GMACD, which reveal a summary of different timeframes.
The chart also shows you a buy and sell zone with potential targets. The arrows point at a potential trend reversal. Moreover, digital clocks tell you about trading sessions.
Buy Signal
Here’s a brief guide for taking long trades:
- You should wait for the up arrow to appear.
- For additional confirmation, you could wait for the EMA crossover and then take the position.
- Aggressive traders can take the position when the price enters the blue zone.
- Depending on your trading style, you could set take profit target at 25%, 50%, or 75% in the blue zone.
- You could place the stop-loss at a 25% level in the red zone.
Sell Signal
Here’s a brief guide for taking short trades:
- You should wait for the down arrow to appear.
- For additional confirmation, you could wait for the EMA crossover and then take the position.
- Aggressive traders can take the position when the price enters the blue zone.
- Depending on your trading style, you could set take profit target at 25%, 50%, or 75% in the red zone.
- You could place the stop-loss at a 25% level in the blue zone.
Conclusion
The Forex Dolly System is a great trading system that can help you make decisions in trading. However, you may find false signals. Therefore, you should always manage your risk wisely. Do not use too much margin in a single position, as leveraged trading can result in significant losses.
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.
