Dynamic Zone is a forex trading system. It is a scalping forex trading system. Scalping systems are designed to make profit in a very short period of time in financial and other markets. Scalpers take small profits but they make big money by doing such scalping frequently. Scalping is one of the most difficult ways to trade in the market. While scalping in the market you should be careful about many factors. Markets are very sensitive to news like interest rate decisions, NFP, inflation report, etc. Scalpers should avoid trading while such news are about to be released in the market.
Dynamic Zone is a simple scalping forex trading system. It consists of two moving averages in the main chart window and three oscillators in the indicator window. When the Dynamic Zone forex trading system is correctly installed in your metatrader, your chart should look like this:
- Moving Averages
Moving Averages are one of the most popular technical indicators for figuring out the trend of the market. The crossovers of moving averages are considered to be a good signal of buying and selling. But moving averages are useful only in trending market environment. The white moving average that you see in the main chart is a 5-period exponential moving average. And a red moving average is a 9-period exponential moving average. The crossovers of these two moving averages generate the trading signal in Dynamic Zone forex trading system.
- Dynamic Zone
Dynamic Zone is a custom made technical indicator that consists of three oscillators. Although there are three oscillators, we will be focusing only on two oscillators. The red oscillator and a blue oscillator will be our major concern. When the blue oscillator is above the red one, it’s a bullish signal and vice versa.
Buying Conditions Using Dynamic Zone System.
- 5-period Moving Average (white) should cross above the 9-period moving average (red).
- The blue oscillator of Dynamic Zone indicator should be above the red oscillator.
- 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 white moving average crosses below the red moving average.
Selling Conditions Using Dynamic Zone System.
- 5-period Moving Average (white) should cross below the 9-period moving average (red).
- The blue oscillator of Dynamic Zone indicator should be below the red oscillator.
- 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 white moving average crosses above the red moving average.
Download Free Forex Dynamic Zone Strategy
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