Di Napoli Template

Topics: Technical analysis, Red Line, Green Line Pages: 2 (395 words) Published: December 29, 2012

InstaTrader Forex

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Di Napoli Template

Definition of Di Napoli;
Di Napoli is a master trader who has written a book entitled “Trading with Di Napoli’s Levels”. He did not trade with Forex but his methods and use of Fibonacci is well known all over the world. As can be seen above, there are five colored horizontal lines in the Chart. It indicates four points in price moves (Excluding the starting point). Forex Trader can use these points for support and resistance purposes;

1. Honeydew Line – This is the start line and forex traders can use this to enter into the market. 2. Green Line – This is the target 1 line. Traders can use as the first level to book profit. 3. Yellow Line – This is the target 2 line. Traders can use this as the second level to book profit. 4. Blue Line – This is the target 3 line and this works as a major support/resistance depending on whether price is moving downward or upwards. 5. Red Line – This is the stop line. This can be used as stop loss level.

These are some of the rules in using a Di Napoli template. Traders need to use 1 hour or 4 hour charts after considering long-term charts. They also need to identify the trend using MACD and DMA and level of price. Next is they have to look for the chance to enter when the Stochastic are aligned with the trend direction, and at the detrend oscillator to decide about entry. Avoid long in overbought and avoid short in oversold condition. Entry point from Fibonacci profit targets and place take profit at the various levels on the chart shown by various lines has to be decided.

Reason of using Di Napoli;
DiNapoli template had been chosen because basically it shows the smallest...
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