Doji candlestick trading is maybe one of the most straightforward tactics to earn income with either stock or currency exchange trading. Trading systems based on candlestick charts can be simple to execute and yet extremely effective. Doji candlestick strategies use the chart without too many other signals. The doji leaps out at the eye extraordinarily obviously so that you can see your primary trading signal at a glance. Of course, you would then look across the previous candles to test that the market is in the right position for a trade. Finally, you would routinely check against one other indicator before really opening a trade. This is a massive advantage in daytrading and it is a day trading method known as doji reversal that we’re going to be taking a look at here.

So first, identifying the doji. The doji candlestick marks a period where the open and close costs are the same. This suggests that there isn’t any candle body, just the two wicks to the highest and lowest prices, and a horizontal line at the open and close cost. So the doji is in the form of a cross. It happens frequently in an exceedingly erratic market and is not so useful then. Nonetheless when it happens in an upward or downward trending market it can forecast retracement or reversal, that the trader can profit from.