Forex DOSR Technique Support and Resistance line on Last Daily Candle

What is it?

DOSR stands for Day Open Support and Resistance and is a widely used technique by forex traders to identify key support and resistance levels on a daily time frame. It involves drawing a support line at the lowest price of the day and a resistance line at the highest price of the day on a candlestick chart.

How is Used?

DOSR technique is mainly used to:

– Identify potential trade opportunities by looking for price action near the support and resistance lines.
– Determine the overall trend of the market by observing the location of price action relative to these lines.
– Set stop-loss and take-profit levels for trades.

Key Features:

– Easy to understand and apply.
– Provides a quick overview of daily support and resistance levels.
– Helps traders identify potential trading opportunities.
– Can be combined with other technical analysis tools to enhance trading decisions.

Benefits:

– Simple and straightforward technique.
– No complex calculations required.
– Can be used on any currency pair or time frame.
– Provides valuable insights into market structure.
– Helps traders avoid trading against the trend.

Product Features:

– Clear and concise instructions on how to apply the DOSR technique.
– Examples of real-life trades using the DOSR technique.
– Discussion of the limitations and potential drawbacks of the technique.
– Recommendations on how to use the DOSR technique in combination with other trading tools.
– Links to additional resources on the DOSR technique.