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I am using web hosting which I bought after I was using e-mail forwarding successfully. E-mail forwarding is now turned off. I use dynadot's names servers, but I typed in the names rather than clicking on the button to use dyndots DNS.

Is it possible to do what I want? If so, how do I set it up?

If the domain is registered through us, you would need to select the 'Use Dynadot Hosting' server selection. And with that selection, you would not be able to do the catchall email forwarding, though you can order domain email, create specific email accounts and specify a forward to email address for each domain email address.

You could use the 'Dynadot DNS' server selection and specify our web host server IP address. Then you would need a mail host that provides forwarding services. Using our web host server IP address is not recommended as it is not guaranteed that the IP address will always remain the same.