In this lesson, we’ll learn how to use Doda Donchian indicator effectively in Forex trading to make money. Doda Donchian is a technical indicator, which you can use in MetaTrader software – the famous forex trading platform. The best part is both the indicator and software are free to download and use.
You may download MetaTrader from its official website.
Doda Donchian Indicator
Doda Donchian is a modified version of Donchian indicator. Looking at the source code, one can easily found out that Support and Resistance levels have been defined using fibonacci retracement formula. So, there is no need to use separate technical indicator for finding fibonacci levels.
Getting Buy or Sell signal
Now, let us learn how to get buy or sell signal using this indicator.
This is the screen shot of MetaTrader software using Doda Donchian indicator.
One can easily get an idea when to enter a trade and when to exit from trade from the chart. The indicator draws one line in the chart. The rule to follow is
Buy: When price closes above Blue line
Sell: When price closes below Blue line
You can use this indicator not just to trade in forex market but also in the stock market, commodity market like Gold, Silver etc. or any other trading market.
Points to Remember
- Firstly, the author recommends using this technical indicator on higher time frame like H4. So, avoid this indicator for shorter time frames. We’ll discuss and learn other strategies and technical indicators for shorter time frame like H1 or 30 minutes.
- Secondly, the price MUST close above or below the Blue indicator line to confirm the signal. Just “kissing” the indicator line does not give you green signal to risk your money.
- Last but not the least and most important, this indicator gives false signal sometimes. So, use another recommended indicator Doda Bollinger Bands and Ichimoku along with it to filter out false signals.
Download Doda Donchian
Download Doda Donchian technical indicator for MetaTrader
Hope you have learned how to effectively use Doda Donchian indicator in Forex trading. If you’ve any doubts, please share in the comments section below.