Purchase entry: Blue dot in the blue box.
If the blue dot is before the blue box is formed, the signal is ignored. The best signal is a blue dot inside a blue box and a red dot inside a red box is also a sell signal.
DTM will automatically draw boxes based on the short-term trend of the market. A red box indicates a search for selling opportunities only. Blue boxes indicate looking for buying opportunities only.
To exit a trade, there are 3 simple ways to exit.
Exit at the green line target
Exit at the red line stop loss
Exit at the end of the US session if the stop loss or target is not reached.
Exit if there is a reversal point.
Make sure that any single trade does not risk more than 2-3% of your trading capital. To increase your chances of making more profit, try to enter as close to the bottom of the blue box as possible. If you enter at the top of the box, the risk:reward ratio is 1:2.5 and if you enter at the bottom of the box, the risk:reward ratio is 1:5.7. This is very important information because it means that if you enter at the top of the box, you get 3/10 of the trade and break even, and if you enter at the bottom of the box, you get 2/10 of the trade and break even. If you follow the simple trading rules above, you should win 8/10 of your trades. It’s just a blue box with blue dots to enter a trade.