Doji Forex Candlestick Strategy
Doji candlestick formation means the traders are indecisive at that moment. This usually happens after the price forms a low or high.
This strategy works on 4 hours and daily timeframe and is applicable to any currency pairs.
- MACD (12,26,9)
- 25 EMA Channel (25 EMA High and 25 EMA low).
There are 2 patterns you have to learn about doji, it’s high and close doji.
1.) Low close doji (LCD)
Bullish momentum is losing when a lower closing low below the doji’s low formed. A short position can then be considered.
Doji usually appears market is overbought. This indicates that buyers are indecisive to continue an upward trend.
Observe a candle that forms 2 tall white candles or harami doji cross and watch for increased volume. as this also confirms a blow-off-top formation.
- Sell on the close or the next time period’s open once a new closing low is made from the previous time period’s doji’s low, especially when the market is against the key pivot point resistance target number.
- Stop loss must be placed above the highest high point of the initial doji candle. Stops should be initially placed as a stop-close-only, meaning you do not exit the trade unless the market closes back above the doji’s high.
- Wait when the first candle opens and the previous candle makes a higher closing high than the previous candle.
- You can use a filter confirming the signal, such as a MACD pattern
- You initially placed a stop-close-only but for an intraday time period, this would have been a mental stop-close-only because most platforms do not have that feature for day trading.
- Stop loss can also be placed above the doji high when the market moves in your favor. You can measure out two-thirds of a position at the first sign you see the trend lose momentum to exit a position.
2.) High close doji (HCD)
- Change must happen and takes place in a market to identify higher closing high above dog’s high at the pivot point support level.
- This pattern is called high close doji (HCD) method. There is a specific area where this pattern needs to fall, it will filter out false signals.
Doji appears when the market is oversold after an extended trend. It means sellers are now indecisive on whether they should continue selling. In addition, prices are near a projected pivot point support target level.
- Buy on the close or on the next open after a new closing high is made from the previous doji candle high,
especially when the market is against a key pivot point support target number.
- Place stops below the lowest low point of the doji. Stops should be initially placed as a stop-close-only,
meaning you do not exit the trade unless the market closes back below the doji’s low.
- Sell or exit the trade on the close or on the next open of a candle that makes a lower closing low near a key pivot point resistance number.
USE EMAs and MACD to filter or confirm signals.
Forex Strategies Installation Instructions
Doji Forex Candlestick Strategy is a combination of Metatrader 4 (MT4) indicator(s) and template.
The essence of this forex strategy is to transform the accumulated history data and trading signals.
Doji Forex Candlestick Strategy provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust this strategy accordingly.
Forex Metatrader 4 Trading Platform:
- Free $30 To Start Trading Instantly
- No Deposit Required
- Automatically Credited To Your Account
- No Hidden Terms
How to install Doji Forex Candlestick Strategy?
- Download Doji Forex Candlestick Strategy.zip
- Copy mq4 and ex4 files to your Metatrader Directory / experts / indicators /
- Copy tpl file (Template) to your Metatrader Directory / templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex strategy
- Right click on your trading chart and hover on “Template”
- Move right to select Doji Forex Candlestick Strategy
- You will see Doji Forex Candlestick Strategy is available on your Chart
Click here below to download: