Double doji forex broker

You can refer to the image below to see an illustration of the Long Legged Doji pattern. That is to say that it appears as a T formation. The open and close occur near the high of the candle, with a relatively long wick to the bottom, suggesting rejection of lower prices, and a strong close for the bulls.

Dragonfly Dojis appear similar to a hammer candlestick ; however, the Dragonfly Doji can prove to be more powerful of a signal, particularly when they Dragonfly Doji appears near the bottom of a down trending market. The expectation is for higher prices following the completion of the Dragonfly Doji pattern. An example of the Dragonfly Doji pattern is shown below. It appears as a horizontal line with very minor or nonexistent upper and lower wicks.

As such, this pattern suggests that there is indecision in the market, and the market is displaying characteristics of a low volatility environment. This is because prices open and close at or near the same area with very little movement to the upside or downside during that session. Regardless, traders should take heed when such a formation appears on the price chart.

Here is what the Four Price Doji looks like. As such, most Doji patterns by themselves are not very telling. However, when the market you are trading forms multiple Dojis in consecutive fashion, this can be an extremely opportune time to take advantage of a breakout trade. More specifically, remember that most Doji patterns are generally indecision patterns, and thus when we have two or three Dojis appearing one after another, then that is indicative of a prolonged period of indecision, which is likely to propel prices in the direction of the eventual breakout.

This is because the markets ebb and flow through periods of low volatility to high volatility , and from periods of high volatility to low volatility. With this backdrop, we will create a strategy for trading the Doji pattern that will take advantage of these periods in the market. Our strategy is based on a double Doji pattern, which is essentially any two consecutive Dojis appearing on the price chart. They should preferably be of a similar Doji variation; however, this is not a requirement.

This double Doji system is a very simple price action based strategy that requires nothing more than the presence of two consecutive Doji patterns. So here are the rules for trading the Double Doji set up: A Double Doji pattern must appear near the top of an uptrend or the bottom of a downtrend. Plot a support line at the low of the double Doji pattern, and a resistance line at the high of the Double Doji pattern. Place an OCO order, one cancels the other order, one pip above the resistance high and one pip below the support low.

Wait for a breakout either above the resistance level which will execute the buy side of the order, or below the support level which will execute the sell side of the order. If the buy order is triggered first, then place a stop just below the low of the double Doji pattern. If they sell order is triggered first, then place a stop just above the high of the double Doji pattern.

We will utilize a two-tiered exit strategy. That is to say that target one will be placed at a level that is equivalent to the height of the Double Doji pattern. Target two will be placed at a level that is equivalent to twice the length of the Double Doji pattern. As we can see from the price chart below, the price of GBPUSD was trading lower, and then we see a period of consolidation before another price level lower that ultimately leads to the formation of a double doji pattern on the price chart.

You can see the double doji pattern circled in green. As such, the first condition of this Doji trading strategy has been fulfilled. Specifically, a double doji pattern has formed at the bottom of the downtrend. We will now draw the support and resistance lines for the double Doji pattern. Notice the second candle within this double Doji pattern put in high of the entire pattern, and also the low of the entire pattern.

As such, we will plot our support line at the low of this candle, and the resistance line at the high of the candle creating our breakout levels. Now that our breakout levels have been plotted, we will place an OCO order, one cancels the other order, with a buy stop one pip above the high and a sell stop one pip below the low of the support line. As we can see, the third bar following the formation of the double Doji pattern signaled the breakout to the upside executing the buy side of our OCO order putting us into a long position in the currency pair.

And so, we will place a stop loss just below the low of the double Doji pattern as noted on the chart. We will be using a two-tiered target as an exit strategy which calls for the first exit to be taken upon price reaching an equivalent distance of the double Doji pattern. Notice the second orange bracket which represents Exit 1. Price easily reach this level and continued to move higher. Exit 2 can be seen just above Exit 1 and represents a length of twice the double Doji pattern.

Here again, price reach that level quite quickly after Exit 1 was achieved taking us out of the position entirely with a great result. This time will be referring to the price chart for the US Dollar to Canadian Dollar Forex pair as seen on the daily timeframe. Looking at the lower left of the price chart, we can see that prices were moving higher, forming an up trending market scenario.

Towards the middle of the price chart, we can see a Double Doji pattern form, which is circled in green. This Double Doji pattern was quite clear and would have clued us into a potential trade set up using the strategy. Unlike the previous example, this Double Doji pattern appears at the top of an uptrend. With these conditions being met, we can now go ahead and plot our support and resistance lines for the Double Doji pattern.

Note that within this double Doji structure, the initial Doji pattern creates the high for the entire pattern, while the second Doji pattern creates the low for the entire pattern. As such, we will use the first Doji high to plot the resistance level, and the second Doji low to plot the support level. Now we will go ahead and place our OCO order, one cancels the other, one PIP above the high as represented by the upper black dashed line, and tone PIP below the low as represented by the lower black dashed line.

In this case, price immediately breaks lower on the very next candle following the double Doji formation. You can see that sell entry noted on the price chart. In the spot where The Long-Legged Doji appears, it is noticed that the rates are recalled just after a reasonable downward move.

If Doji serves at the top of the retrieval that we are unaware of while it is still developing , a dealer can now clarify their decision and possible changes in a direction. And later on, looking forward to minimizing the combination of the upcoming candle next to Doji.

For The Long-legged Doji, The stop loss will be spotted on the tip of the uppermost wick. You will find this pattern tucked away at the bottom of a downtrend. It shows that lower prices have been rejected. It signals a bullish trend. It shows a change in the price direction. It signifies the upcoming change in the trend, mostly bullish. It strongly opposes the lower prices and can be seen at the bottom of a downtrend, hence, the bullish signal.

The Dragonfly Doji can be seen at the elite of an upward move or the base of a downward move and indicates the possibility of changes in a direction. An expanded, reduced wick on this Doji at the base of a bearish movement is a much more bullish indication. Traders usually look for its formation at the resistance and support levels to trade with the Doji candlestick.

In this case, the Dragonfly Doji can be seen at the trendline. This rejection of lower prices signifies that the trader can expect a bullish trend and prepare for a selling trend. This pattern is found at the top of an uptrend. It shows that higher prices have been rejected.

It signals a bearish trend. It shows a change in the price direction as well. The Gravestone Doji and Dragonfly Doji are inversely proportional to each other. It occurs as the movement of rates starts and ends at the bottom end of the trade limit. Once the candle was opened, purchasers could push the rates upward, but they could not bear the bullish moment while closing.

It indicates bearishness on the elite of an upward movement. The 4 Price Doji is just a horizontal line without any vertical line beyond or beneath the horizontal. The 4 price Doji pattern represents the maximum inability to decide as all the four rates, high, low, open, and close showcased by the candle, are similar.

The 4 Price Doji is an exclusive pattern that represents an unstable and peaceful market. It comprises only horizontal lines.

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If they sell order is triggered first. We will utilize a two-tiered exit strategy. That is to say that target one will be placed at a level that is equivalent to the height of the Double Doji pattern. Target two will be placed at a level that is equivalent to twice the length of the Double Doji pattern. You can see the double Doji pattern circled in green. Notice the second candle within this double Doji pattern put in high of the entire pattern; and also the low of the entire pattern.

As such, we will plot our support line at the low of this candle; and the resistance line at the high of the candle creating our breakout levels. Now that our breakout levels have been plotted; we will place an OCO order; one cancels the other order; with a buy stop, one pip above the high, and a sell stops one pip below the low of the support line.

As we can see, the third bar following the formation of the double Doji pattern signaled the breakout to the upside executing the buy-side of our OCO order putting us into a long position in the currency pair. And so, we will place a stop loss just below the low of the double Doji pattern as noted on the chart.

We will be using a two-tiered target as an exit strategy which calls for the first exit to be taken upon price reaching an equivalent distance of the double Doji pattern. Notice the second orange bracket which represents Exit 1. Price easily reach this level and continued to move higher. Exit 2 can be seen just above Exit 1 and represents a length of twice the double Doji pattern.

Here again, the price reach that level quite quickly after Exit 1 was achieved taking us out of the position entirely with a great result. This time will be referring to the price chart for the US Dollar to Canadian Dollar Forex pair as seen on the daily timeframe.

Looking at the lower left of the price chart, we can see that prices were moving higher; forming an up-trending market scenario. Towards the middle of the price chart, we can see a Double Doji pattern form, which is circled in green. This Double Doji pattern was quite clear and would have clued us in to a potential trade setup using the strategy.

Unlike the previous example; this Double Doji pattern appears at the top of an uptrend. With these conditions being met, we can now go ahead and plot our support and resistance lines for the Double Doji pattern. Note that within this double Doji structure; the initial Doji pattern creates the high for the entire pattern. As such, we will use the first Doji high to plot the resistance level, and the second Doji low to plot the support level.

In this case, the price immediately breaks lower on the very next candle following the double Doji formation. You can see that sell entry is noted on the price chart. Now that we are in this position, we will make sure to protect ourselves in case of an adverse price move by placing a stop-loss order in the market. There is nothing new about the fact that while trading in this particular pattern, there is a need for a strong signal to support the trend predictions.

Long-legged Doji The long-legged Doji pattern has the same closing and opening prices, and the upper and the lower wicks are extended. It is often associated with a market that has greater volatility. Just like the Doji star pattern, it also shows indecision in the market. The Long-Legged Doji commonly has a larger expansion of the vertical lines beyond and beneath the horizontal line. By this, we can make out that the candle price movement energetically fluctuated at the time frame of the candle price movement but locked at nearly the similar level that it opened.

This demonstrates the inability to make decisions between the seller and purchaser. In the spot where The Long-Legged Doji appears, it is noticed that the rates are recalled just after a reasonable downward move. If Doji serves at the top of the retrieval that we are unaware of while it is still developing , a dealer can now clarify their decision and possible changes in a direction. And later on, looking forward to minimizing the combination of the upcoming candle next to Doji.

For The Long-legged Doji, The stop loss will be spotted on the tip of the uppermost wick. You will find this pattern tucked away at the bottom of a downtrend. It shows that lower prices have been rejected. It signals a bullish trend. It shows a change in the price direction. It signifies the upcoming change in the trend, mostly bullish.

It strongly opposes the lower prices and can be seen at the bottom of a downtrend, hence, the bullish signal. The Dragonfly Doji can be seen at the elite of an upward move or the base of a downward move and indicates the possibility of changes in a direction. An expanded, reduced wick on this Doji at the base of a bearish movement is a much more bullish indication. Traders usually look for its formation at the resistance and support levels to trade with the Doji candlestick.

In this case, the Dragonfly Doji can be seen at the trendline. This rejection of lower prices signifies that the trader can expect a bullish trend and prepare for a selling trend. This pattern is found at the top of an uptrend. It shows that higher prices have been rejected. It signals a bearish trend. It shows a change in the price direction as well. The Gravestone Doji and Dragonfly Doji are inversely proportional to each other.

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If the next bar ends on top of the upper borderline of the double doji, it is a prompt to purchase. For the stop-loss of the purchase entry, position the stop-loss beneath support. Take-Gain for Purchase Entry Initiate a take-gain when he following conditions is observed: 1. If a change in direction of price action design creates for example a double doji with the third bar bypassing beneath the range of dojis it is obviously an auction, thus an exit for all existing bullish orders.

Auction Entry Rules Initiate an auction entry when the following conditions are observed: 1. If a double doji creates on the activity chart and the 3rd bar ends beneath the lower borderline of the double doji, an auction is highly recommended. Take-Gain for an Auction Entry Initiate a take-gain or an exit if the following rules are observed: 1. These moves can easily be extended after a time of doubt. Double Doji is a very rare form of Doji candlestick and has the ability to find changes in comparison to a single Doji.

This type of pattern also presents the big changes in market price. These patterns are helpful for them to handle the situation and fight against these hesitations. You can make three pairs of double Doji candlesticks to get a perfect pattern. Two different Doji combines these pairs. Doji and Long Legged Doji Pair Doji and long-legged Doji is a pair that represents the movement of price on the sideway by continuous combination.

It is also a sign of embellishment of patterns at a wider scale. In this pattern, it is clear that the market can select the right direction. By this pattern, it is possible for the price that it will select any one of the trend directions: Bullish direction or Bearish direction. Two Gravestone Doji Pair Whenever you use a single gravestone Doji, it represents a bearish tendency. You can observe it on the chart where price rejection is mentioned above the key level.

Similarly, the two-time rejection of prices makes the condition of Dragonfly Doji solid and powerful. In this pattern, the chances of bearish retraction movement may increase. Experts recommend that it is ideal to have complete knowledge about Single Gravestone Doji for best results to understand double gravestone Doji. Two dragonfly Doji Pair In this type of pattern, alteration of Bullish tendency very clearly. It means they are now in a powerful position in comparison to sellers.

In this way, they are trying to put the market up to the level of the candlestick. On the other hand, if you have to face rejection two times, there is the possibility of an increase in inversion tendency. So, this pair shows an increase in Bullish tendency than single Doji.

The double Doji pattern is one of these methods. The is that you must know the proper way of using them in trades. It is good for a trader because it supports the demand zone level and helps to manage price trends in the market. Open A Sell Order In the case when you are planning to apply a double gravestone Doji pattern for trading, you can open a sell order.