Forex Dinapoli Strategy For Metatrader 5

Most traders are not taught the DiNapoli trading method but the beauty of the financial markets has always been the availability of thousands of price speculation techniques.

The Forex Dinapoli strategy for Metatrader 5 is derived from the successes of Joe DiNapoli’s system.

It is based on the original application of Fibonacci levels and he terms this the DiNapoli levels.

The strategy is more concerned with the adaptation of Fibonacci levels with emphasis on just two ratios i.e. the 0.618 and 0.382.

Furthermore, the strategy anticipates that price will test the 0.382 level and we expect the market to bounce off the level and retrace back in your favor.

Trade Setup 

MetaTrader 5 Indicators: Moving Average.ex5 (Parameters Modified; Period=24, Shift=6, Style=Magenta), Filtered deviation scaled MA.ex5 (Inputs Variable Modified; MA period=36), DSL QQE histo (Defualt Setting)

Trade Style: Scalping, day trading, swing trading

Trading Sessions: London | New York | Tokyo

Currency Pairs: Majors, cross pairs, exotics

Platform: Metatrader 5 (MT5)

Download

Download the Forex Dinapoli Strategy For Metatrader 5

Buy Trade Example: GBPUSD, H1 Chart

Fig. 1.0

Trading Strategy Rules For Buy and Sell Trades Explained

Buy Entry

Enter a buy trade if the following trading conditions are met:

  1. If price tests the 38.2 DiNapoli level derived from plotting the Fibonacci levels (see Fig. 1.0), price is expected to bounce off that level and retrace in your favor, therefore a buy will do.
  2. If the magenta 24 EMA Metatrader 5 indicator line crosses below the medium sea green Filtered deviation scaled MA indicator line as shown on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to go long on the stipulated currency pair.
  3. If the deep sky blue and silver histograms of the DSL QQE histo custom indicator aligns above the 50.00 signal level, price is said to be pushed to the upside, as such a buy alert will do.

Suggested Stop Loss for Buy Entry: Place stop loss on the 61.8 DiNapoli level.

Suggested Exit Strategy/Take Profit for Buy Trade

Exit the buy trade if the following trading conditions are met:

  1. If the magenta 24 EMA indicator line intersects the Filtered deviation scaled MA indicator line during the course of a bullish trend, an exit or take profit is duly recommended.
  2. If the DSL QQE histo indicator pops up a light salmon histogram below the 50.00 level (refer to Fig. 1.0), it is a trigger to exit or take profit at once.

Sell Entry

Open a sell trade if the following trading conditions are met:

  1. If price tests the 38.2 DiNapoli level derived from adding the Fibonacci levels as exemplified on Fig. 1.1, price is expected to bounce off that level and retrace in your favor, thus a signal to sell the forex pair of focus.
  2. If the magenta 24 EMA indicator line crosses above the medium sea green Filtered deviation scaled MA indicator line as seen on Fig. 1.1, price is said to be dragged lower i.e. a trigger to go short on the selected forex pair.
  3. If the light salmon and silver histograms of the DSL QQE histo custom indicator aligns below the 50.00 signal level, bears are said to be gaining downward momentum, as such a sell alert will suffice.

Suggested Stop Loss for Sell Entry: Place stop loss on the 61.8 DiNapoli level.

Suggested Exit Strategy/Take Profit for Sell Entry

Exit the sell trade if the following trading conditions are met:

  1. If the magenta 24 EMA indicator line intersects the Filtered deviation scaled MA indicator line while a bearish trend is ongoing, an exit or take profit is duly advised.
  2. If the DSL QQE histo indicator pops up a deep sky blue histogram above the 50.00 level (see Fig. 1.1), it is a trigger to exit or take profit immediately.

Sell Trade Example: GBPUD, H1 Chart

Fig. 1.1

Free Download

Download the Forex Dinapoli Strategy For Metatrader 5

MT5 Trading Indicators Used For This Strategy

The 24 EMA (Exponential Moving Average) is a weighted moving average that delivers more importance to the recent price data than the simple moving average does.

The Filtered deviation scaled MA forex indictor is a fast average which attempts to use the slope change as a form of buy/sell signal.

The DSL QQE histo forex indicator is a modified QQE indicator that adds a couple of cool features to the basic QQE indicator such as:

Discontinued signal line levels which is deployed to further gauge the trend and color altering histograms that are based on the aforementioned levels.

Share Now!