2 Nov 2015

FREE FOREX EDUCATION - DOJI CANDLESTICK SIGNAL



A Doji candlestick signal represents indecision in the market. It can provide with great trading opportunities in range bound markets.

1) A Doji appears at a strong resistance level
The rate has been stuck in  a massive box range for more than half a year. The price has formed a doji at the major resistance level. As doji is a neutral candlestick signal, we can't trade it straight away and we have to wait for extra confirmation that the price is going to reverse.

2) Strong rejection from the resistance
A strong bearish candlestick after the doji indicates the reversal is legit and we can sell the the market. We set the stop loss order just above the range highs and we can target the range support.

3) Target is hit

About three weeks later our take profit order is triggered.

Take a note that trading doji candlestick signal this way requires a strong prolonged period of range trading on H4 timefram or larger as in smaller timeframes a doji appears much more frequently and the range boundaries are not nearly as strong.



For deeper knowledge on how the Forex market works and how to trade it simple check out our Forex Online School

If you don't want to miss any new trade ideas and updates, subscribe to one of our Trade It Simple Signal Service Plans and receive in your E-mail:
  • Entry details
  • Take-profit details
  • Stop-loss details
  • Trade updates
 SUBSCRIBE HERE!


0 comments :

Post a Comment