Doda Donchian Forex Scalping Trading Strategy

I’ve designed a very simple yet efficient forex scalping strategy that incorporates basic indicators in triggering buy/sell forex trading alerts in the market.

It’s called the Doda Donchian strategy for scalping and day trading low spread currency pairs on the lower timeframes i.e. 1-Minute, 5-Minute and 15-Minute.

Chart Setup

MetaTrader4 Indicators: Doda-Donchian.ex4 (default setting), Doda-BBands.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute

Recommended Trading Sessions: Any session

Currency Pairs: Low spread pairs, max. 4 pips for best profit potential

Download

Download the Doda Donchian Forex Scalping Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following indicator or chart pattern gets displayed:

  1. If price opens and close above the red dotted line of the Doda-Donchian.ex4 custom indicator as shown on Fig. 1.0, price is said to be experiencing somewhat bullish pressures and traders are expected to initiate buy order(s) on this premise.
  2. If the royal blue dotted line of the Doda-Donchian.ex4 custom indicator forms below the candlesticks as seen on Fig. 1.0, price is said to be experiencing upward pressures i.e. a trigger to go long on the pair of interest.

Stop Loss for Buy Entry: Place stop loss below short-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions hold sway in the market:

  1. If price closes below the red dotted line of the Doda-Donchian.ex4 custom indicator as shown on Fig. 1.0, it is a sign of weaning bulls influence in the market, an exit or take profit will suffice.
  2. If the Doda-Donchian.ex4 custom indicator forms a red dotted line that is aligned above the candlesticks, it is a trigger to exit or take profit without delay.

Sell Entry Rules

Enter a sell order if the following chart or indicator patterns get displayed:

  1. If price opens and close below the red dotted line of the Doda-Donchian.ex4 custom indicator as shown on Fig. 1.1, price is said to be undergoing somewhat bearish pressures i.e. a trigger to enter a sell order.
  2. If the red dotted line of the Doda-Donchian.ex4 custom indicator aligns above price bars as seen on Fig. 1.1, price is said to be pressured to the downside i.e. a trigger to go short on the pair of interest.

Stop Loss for Sell Entry: Place stop loss above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following rules or conditions hold precedence:

  1. If price closes above the red dotted line of the Doda-Donchian.ex4 custom indicator as shown on Fig. 1.1, it is a sign of weaning bears influence in the market, an exit or take profit will be sufficient.
  2. If the Doda-Donchian.ex4 custom indicator forms a royal blue dotted line that is aligned below the price bars, it is a trigger to exit or take profit at once.

Sell Trade Example

Fig. 1.1

Free Download

Download the Doda Donchian Forex Scalping Trading Strategy

About The Trading Indicators

The Doda-Donchian.ex4 is a custom indicator created by Gopal Krishan Doda and famously known as the turtle indicator.

It is a trend following indicator that deploys the EMA (120) coupled with other values to eliminate noise when scanning the market for trend changes

The Doda-BBands.ex4 indicator on the other hand is an enhanced version of the Bollinger Bands and generates buy and sell signals when the dotted royal blue line and red line forms below and above price bars respectively.

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