Forex Never play with the Doji Candlestick

[Victorial]

If you are a forex trader, I believe you would have heard of this type of candlestick pattern before. The Doji candlestick is a pattern that can occur in an uptrend or a downtrend following a bullish run or bearish move. Since it can occur anywhere, what does it signify?

A Doji candlestick has one meaning; indecision. It is a period in the market where the market can go in any direction. Both the sellers and buyers have no control of the market. This is a type of pattern that opens and closes exactly where it opens.

Should a Doji occur in a downtrend, it means that the bulls are kicking in and the bears are losing their grip to keep prices down. For me, when I see this, I will exit and await a buy signal.

Should a Doji occur in an uptrend, it means that the bears are kicking in and the bulls are losing their grip to keep prices up. For me, when I see this, I will exit and await a sell signal.

Still, this does not mean the market will reverse in the opposite direction but it is a good warning that a price reversal is imminent.

Do you trade the Doji candlestick pattern?

 

[moonchild]

Yes, you're right, Doji represent indecision especially in the high time frames, most Doji formation are as a result of an exhaustion from a trend, bulls or bears might take charge at any time depending on the trend, I use as an entry signal too, if it happens in a key, support or resistance level, the I'll put my support or resistance below it or above it depending on the trend, it can also be used as an exit strategy if you're in a trade already, but honestly I don't taken Doji from h1 downwards serious, because they candlesticks doesn't hold enough data, like the 4h candlestick.

A Doji in 4h chart holds more data than the one from 1h downwards. Basically, knowing candle sticks is one of the secrets of forex, when I learnt candlesticks and I became proficient in them, I deleted all of my indicators and started trading a naked chart.

 

[Kingstone]

Yes, you're right, Doji represent indecision especially in the high time frames, most Doji formation are as a result of an exhaustion from a trend, bulls or bears might take charge at any time depending on the trend, I use as an entry signal too, if it happens in a key, support or resistance level, the I'll put my support or resistance below it or above it depending on the trend, it can also be used as an exit strategy if you're in a trade already, but honestly I don't taken Doji from h1 downwards serious, because they candlesticks doesn't hold enough data, like the 4h candlestick.

A Doji in 4h chart holds more data than the one from 1h downwards. Basically, knowing candle sticks is one of the secrets of forex, when I learnt candlesticks and I became proficient in them, I deleted all of my indicators and started trading a naked chart.

Wow. You are indeed a good trader. I want to learn how to use only the candlestick patterns also but it has not been easy. I do not think you can be a scalping trader if you are using the 4 hour time frame. I use only the 5 minutes time frame to know when to enter and when to exit. It has been like that for months and I do not even consider the candles in the higher timeframe except for the moving averages. They provide which direction to go for me and if it has smoothened enough to buy or sell.

A Doji for me means time to exit the trade and await the reverse signal. It is an exit and entry candle but you have to trade it with other indicator to be so sure.

 

[Deleted member 28127]

Most the internet broker have studied these tips online so what does the broker is revert transaction or even suspend an account if they find you use a math method that let them always a loser and there is even people who perform buy and sell with two accounts and find themselves loser on same thing by same amount because broker is controlling your actions.

 

[moonchild]

@Kingstone I used to be a scalper when I'm less busy, but right now I'm busy with other things so it's hard for me to scalp what I do now is swing trade, I can hold trades for days before I exit.

 

[Kingstone]

@Kingstone I used to be a scalper when I'm less busy, but right now I'm busy with other things so it's hard for me to scalp what I do now is swing trade, I can hold trades for days before I exit.

I want to learn how to hold trade for a long especially the requirement. I feel you can't just hold trades without a reasonable lot size and capital. In fact, most swing traders leave the trade open without using SL. I hope you can share some tips.

Then as a swing trader, you must have eliminated that fear. Truth be told, I am still scared each time I place a trade. Even though it meets my strategies, I do not get the best out of every trade I place. It is killing my profits daily. I hope to find solutions very soon cos I want to go fully into forex trading.

 

[Setho]

One of the basic things that you should be able to know as a forex trader right from the beginning is to know the market behaviour especially the battle between the bears and the bulls in order to determine where prices going to go. The doji candle usually due to needs that within a particular period of time the strength between buyers and sellers have been equally matched and I thought you really cannot predict exactly where the price is going to go and I always advise that at this point in time it is best to close all your trades and wait for a flipping.

 

[sincerem]

Thanks slot for your well taking explanation around the patterns of doji indicator. I am not a forex trader, I simply see this information useful, and one they puts the minds of a novice trader who never knew about it, to understand it better and know how to follow the market trends to avoid making an unwise margin call to avoid making series of losses. Crypto and forex trading is similar, if you have an idea in any of them, it means you've gotten basic knowledge too, to trade the other which you don't really put attention on. Forex and crypto are simply hyper risky kind of investment, that's why we should apply the martingale system of trading to minimize losses and maximize profit as well.