A Doji candlestick will provide very important information on its own or together as part of signals from other candlestick formations. It forms when a security's open and close prices are equal. The length of the upper and lower shadows can vary and the resulting candlestick sometimes looks like a cross, an inverted cross or a plus sign. The best formation is when the open and close prices are equal, but this is not necessary.
A Doji formed alone implies that the trend is neutral and bullish or bearish confirmations are based on preceding price action and future confirmation.
What Is A Doji Candlestick Pattern?
The doji candlestick is one of the most common candlestick reversal patterns you will find in the market, in total there are 4 different types which are listed below. It is characterized by opening and closing prices that are virtually equal. A doji is a key trend reversal indicator.
Types of Doji Candles Identified
There are 4 different types of Doji candlesticks that are identified using this software.
Neutral Doji
The opening and closing prices are virtually equal.
Long Legged Doji
This reflects a great amount of indecision about the future direction of the underlying asset.
Gravestone Doji
The long upper shadow suggests that the direction of the trend may be nearing a major turning point. It is formed when the opening and closing price of the underlying asset are equal and occur at the low of the day.
Dragonfly Doji
The long lower shadow suggests that the direction of the trend may be nearing a major turning point. It is formed when the opening and closing price of the underlying asset are equal and occur at the high of the day.
Trade Setup Using A Doji
The image below shows a classic example of price reversal after an uptrend when a bearish Gravestone Doji is formed, the success rate is higher when the candle is formed as it enters a resistance zone. This indicator can be used with the cTrader Support & Resistance Indicator. The gravestone doji is a variation of this reversal pattern and it forms when the open, low and close are equal and the high creates a long upper shadow.
Learn How To Trade Using Doji's
We do not just provide traders with an indicator to download we also provide educational material to learn how to trade using Doji candlesticks.
Telegram Alerts
When a signal happens for a trend reversal, the indicator will send a Telegram alert directly to your PC or mobile device, this is much faster than email as it is a push notification.
POP-UP WINDOW MESSAGE
This indicator will also display the classic pop-up window when an alert occurs.
How To Use The Input Parameters
Your adjustable parameters are all explained in a PDF document which can be viewed below.
Watch a Video Demonstration
The video has been uploaded to 1080p High Quality, so do not forget to set your YouTube video quality to 1080p HD.
Duration: 9 minutes
How To Install & Remove
First, make sure you have the cTrader trading platform installed and then unzip the file and double-click on it to automatically install it onto the platform.
Any Questions?
If you have any questions or if there are any bugs, please first search our product help forum for the answer, if you cannot find it, post a new question.
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