Doji candlestick patterns are like a coiled spring with so much stored energy ready to “jump!” And that’s what I like about trading doji candlesticks.
This is especially true if you find doji candlestick patterns that form in important levels such as:
- support and resistance levels,
- trendline touches
- and fibonacci retracement levels.
Generally, doji candlestick patterns are very short candlesticks compared to the other candlesticks and price is constrained within a very tight range and that is what creates the “coiled spring reaction” kind of situation:
Once price breaks the high/low of the doji, price shoots up or down and if you happen to catch that breakout of that “coiled spring”, you stand to make some explosive profits.
That is the MAGIC of trading Doji candlestick patterns.
Here is an example of what I’m talking about:
What are doji candlesticks?
The doji is a commonly found pattern in a candlestick chart . The doji is characterized by 3 distinct features:
- it is “generally” a short candlestick in comparison to the other candlesticks. Being short means its trading ranges are very small (difference between its high price and low price).
- the opening and closing prices are equal or almost equal which means that it hardly has any candlestick body at all.
Doji in Japanese means “to hesitate”.
Now, you’ll see lots of information about doji candlesticks and how to trade them but in here, I will show you how I trade using doji candlesticks.
But first up, you need to understand the 5 different types of doji candlesticks patterns.
6 Types Of Doji Candlestick Patterns
There are 6 types of doji candlesticks you are going to learn here. Let’s start with the first one…
#1: Doji Star
A doji star is the shortest doji off the doji candlestick patterns (excluding four price doji) and this is what you’d see in an ideal situaiton on your forex charts; a doji with no body, just a cross, where opening price=closing price and much shorter wicks on both ends usually of the same length:
There are two types of doji star candlestick:
- morning doji star (bullish)
- evening doji star (bearish)
Where do you look for morning doji star candlestick to trade?
In a bottom of a trend or in a downtrend.
And also on:
- horizontal support levels
- resistance turned support levels
- fib retracement livels like 61.8%
- downward trendline break and retest
Where do you look for evening doji stat candlestick to trade?
- resistance levels
- support turned resistance levels
- upward trendline break and retest
- fib retracement levels
To check out the next 5 doji candlesticks, click the “Next” button below.