Trading the Doji Candlestick Pattern
Doji candle is the special candle that represents the indecision of the market which means that it is not giving weight to bulls nor bears. In this article we will discuss top strategies by which we can trade the doji candle.
How does doji candle work?
As you can see in the first image that doji has a cross shape. It normally comes when a currency pair open and close at the same point and you will see upper and lower wicks in equal length. Doji also indicates the slow momentum of the ongoing trend as well.
How to easily trade Doji Pattern?
There are different types of ways to trade the doji candlestick pattern. You need to find out the signals that are necessary for the profitable trading along with this pattern.
Doji Star Pattern trading
The above chart image shows that the doji star arises at the bottom of the downward trend. So, it indicates us that the buyers and sellers are not in control and this trend can make a reversal from this area. So, this is the area where you need to look for the signals from your indicators and strategies. The above image indicates that stochastic indicator has provided us the information that market has reached to the possible oversold levels.
Trading with Dragonfly Doji
As you can see in the above image that dragonfly doji appeared in the upward trend. The most important thing that this type of doji candle normally arises at support and resistance areas. In the above image it has appeared at the support this time. After this candle has appeared on the chart so it was a clear good bye to the down trend and market moved up nicely.
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