DOSR Support & Resistance With Daily Open Forex Indicator (MT4)

About the DOSR Support & Resistance With Daily Open Forex Indicator

The DOSR support & resistance indicator can be used to find trade entries and exits, or to confirm buy & sell trade setups issued by your favorite trading systems or strategies.

The DOSR Support Resistance with Daily Open Forex Indicator for MT4 is a comprehensive trading tool designed to assist traders in identifying key support and resistance levels based on the daily open price.

This indicator calculates and displays these levels on your chart, providing a clear visual representation of potential price barriers.

By incorporating the daily open price, it offers a dynamic approach to understanding market structure, helping traders make informed decisions about entry and exit points.

Trading idea

• The daily trend is up whenever the price is trading above the day’s open price.
• The daily trend is down whenever the price is trading below the day’s open price.

Key Features

• Dynamic Support and Resistance Levels: Automatically calculates and plots support and resistance levels based on the daily open price.
• Visual Clarity: Provides clear visual markers on the chart, making it easy to identify key price levels.
• Customizable Settings: Allows adjustment of parameters to suit individual trading strategies and preferences.
• Multi-Timeframe Support: Compatible with various timeframes, enabling traders to analyze different market perspectives.
• Free Download: Available for free, providing traders with a valuable tool without any cost.

Free Download

Download the “dosr.mq4” indicator for MT4

Indicator Example Chart (EUR/USD H1)

Below is an example of how the DOSR Support Resistance with Daily Open Forex Indicator appears on an MT4 chart.

Buy and Sell Trading Rules

Buy Signal

• Entry: Enter a buy position when the price approaches a support level and shows signs of reversal, such as a bullish candlestick pattern.
• Stop Loss: Place a stop loss below the identified support level to manage risk.
• Take Profit: Set a take profit level at the next resistance zone or based on a favorable risk-reward ratio.

Sell Signal

• Entry: Enter a sell position when the price approaches a resistance level and shows signs of reversal, such as a bearish candlestick pattern.
• Stop Loss: Position a stop loss above the identified resistance level to protect against adverse price movements.
• Take Profit: Determine a take profit level using the next support zone or a favorable risk-reward ratio.

DOSR Support & Resistance with Daily Open + Entry Take Profit Forex Winner MT4 Strategy: Precision Entries at Key Levels

This strategy combines the DOSR Support & Resistance with the Daily Open Indicator and the Entry Take Profit Forex Winner Indicator for MT4.

It is designed for traders who seek high-probability entry points at significant support and resistance levels, with clear take-profit targets.

By identifying key price levels and confirming entry signals, this approach aims to enhance trading accuracy and profitability.

Buy Entry Rules

• Support Zone Identification: Wait for the price to approach a strong support zone identified by the DOSR Support & Resistance with the Daily Open Indicator.
• Entry Signal Confirmation: Enter a buy trade when the Entry Take Profit Forex Winner Indicator displays a buy signal, confirming upward momentum.
• Stop Loss Placement: Place the stop loss below the identified support zone or a recent swing low to limit potential losses.
• Take Profit Setting: Set the take profit at a recent swing high or a predetermined risk-to-reward ratio that aligns with your trading plan.

Sell Entry Rules

• Resistance Zone Identification: Wait for the price to approach a strong resistance zone identified by the DOSR Support & Resistance with the Daily Open Indicator.
• Entry Signal Confirmation: Enter a sell trade when the Entry Take Profit Forex Winner Indicator displays a sell signal, confirming downward momentum.
• Stop Loss Placement: Place the stop loss above the identified resistance zone or a recent swing high to limit potential losses.
• Take Profit Setting: Set the take profit at a recent swing low or a predetermined risk-to-reward ratio that aligns with your trading plan.

Advantages

• Clear Entry Points: The combination of support/resistance levels and entry signals provides clear and actionable trade setups.
• Enhanced Accuracy: Confirming entry signals at key price levels increases the probability of successful trades.
• Adaptability: This strategy can be applied to various timeframes and currency pairs, offering flexibility to traders.

Drawbacks

• False Signals: In sideways or choppy markets, the indicators may produce false signals, leading to potential losses.
• Requires Patience: Traders must wait for clear support/resistance levels and entry signals, which may not occur frequently.

Example Case Studies

Case Study 1: EUR/CHF (1-Hour Chart)

On the EUR/CHF 1-hour chart, the price approached a strong support zone identified by the DOSR Support & Resistance with Daily Open Indicator.

The Entry Take Profit Forex Winner Indicator then displayed a buy signal, confirming upward momentum.

A buy trade was executed with the stop loss placed below the support zone and the take profit set at a recent swing high.

The trade resulted in a 42-pip profit.

Case Study 2: GBP/USD (1-Hour Chart)

On the GBP/USD 1-hour chart, the price approached a strong resistance zone identified by the DOSR Support & Resistance with Daily Open Indicator.

The Entry Take Profit Forex Winner Indicator then displayed a sell signal, confirming downward momentum.

A sell trade was entered with the stop loss above the resistance zone and the take profit set at a recent swing low.

The trade achieved a 2:1 risk-to-reward ratio.

Strategy Tips

• Combine with Trend Indicators: Enhance the strategy by integrating trend indicators like the Moving Average to confirm the overall market direction.
• Use Multiple Timeframes: Analyze higher timeframes for trend direction and lower timeframes for precise entry points.
• Trade During High Liquidity Sessions: Focus on trading during the London and New York sessions when market liquidity is higher, reducing the likelihood of false signals.

Download Now

Download the “dosr.mq4” indicator for Metatrader 4

Indicator Specifications

FAQ

1. Can the DOSR Support Resistance Indicator predict price reversals?

Yes, by highlighting key support and resistance levels, the indicator helps traders identify potential reversal zones where the price may change direction.

2. Does the indicator provide alerts for breakouts?

Yes, the indicator can be combined with MT4 alert functions to notify traders when the price breaks through a support or resistance level.

3. Is this indicator suitable for scalping strategies?

Yes, it can be used for short-term strategies such as scalping, especially on lower timeframes, but combining it with other confirmation tools is recommended.

4. Can I use the DOSR indicator alongside other MT4 indicators?

Absolutely, it works well with trend, momentum, and oscillator indicators to enhance trade confirmation and overall strategy effectiveness.

Summary

The DOSR Support Resistance with Daily Open Forex Indicator for MT4 is a valuable tool for traders seeking to assess key support and resistance levels based on the daily open price.

By incorporating this indicator into your trading strategy, you can enhance your ability to identify potential entry and exit points, improving your overall trading performance.

Its compatibility with various timeframes and customizable settings makes it a versatile addition to your trading toolkit, suitable for both novice and experienced traders.