Dorsey Inertia is a forex trading indicator. It is an oscillator based trading indicator. The Dorsey indicator alone cannot be used to make trading decisions. Yes, you can make your trading decisions solely based on Dorsey Inertia indicator but it would be amazing when you combine this indicator with any other trading indicators. The Dorsey Inertia indicator works in a RSI fashion. The Dorsey Inertia indicator can be used as a confirmation indicator rather than the signal generating indicator. The Dorsey inertia indicator lies at the indicator window so the main screen remains clean.

When you install Dorsey Inertia indicator in your trading platform, your chart should look like this:

• Dorsey Inertia Indicator

Dorsey Indicator is nothing more than a green oscillator. It has the range of 25 to 68 and the median line lies at the level of 50. It means when the market is above the 50, it is an up trending market and when the Dorsey indicator is below the level of 50, it is a down trending market. Therefore, you should be buying when this indicator crosses above 50, and you should sell when this indicator crosses below 50. However, rather than blindly following the signals of this indicator you should look at the general direction of the market. Don’t buy unless it is an up trending market and vice versa.

Buying Conditions Using Dorsey Inertia Indicator.

• Market should be up trending.
• The Dorsey inertia indicator should cross above the level of 50.
• Place your long position as soon as above conditions are met.
• Place your stop loss just below the recent swing low.
• Take your profit when the Dorsey inertia indicator crosses below the level of 50.

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Selling Conditions Using Dorsey Inertia Indicator.

• Market should be down trending.
• The Dorsey inertia indicator should cross below the level of 50.
• Place your short position as soon as above conditions are met.
• Place your stop loss just above the recent swing high.
• Take your profit when the Dorsey inertia indicator crosses above the level of 50.

Download Free Forex Dorsey Inertia Indicator

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