Candlestick patterns are often a useful tool for traders to observe market behavior. For instance, specific patterns may suggest indecisiveness, such as the Doji candle with a very small body because the price ended near the opening point.
These indecisive moments could also imply a potential reversal.The Doji Arrows Indicator is a tool created to assist traders in recognizing potential Doji candles that could indicate a market reversal
How the Doji Arrows Indicator Works?
The Doji Arrows Indicator uses an algorithm to identify potential Doji candles by analyzing the close price of each candle and its preceding one.
It then measures the price difference between the two candles against a preset threshold to determine if it is a Doji Pattern, The indicator is set to identify Doji candles with a distance between the two points less than 1 pip.
It determines the potential change in direction by analyzing the distance between the closing price and the high and low prices of the candle
Buy Trade Setup
When to Enter?
If you see a blue arrow pointing upwards from the Doji Arrows Indicator, along with a confirmed Doji candle in the direction of the trend, then consider opening a buy order.
When to Exit?
As soon as there are indications of a possible bearish shift in price action, it’s best to wrap up the trade.
Sell Trade Setup
When to Enter?
If you notice a red arrow pointing downwards on the Doji Arrows Indicator that aligns with the trend direction and a confirmed Doji candle, consider opening a sell order.
When to Exit?
As soon as you notice signs of a possible bullish reversal, it’s best to close the trade.
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<p>The post Doji Arrows Indicator for MT4 first appeared on EzyForexTrading - Download Metatrader Indicators and Learn trading!.</p>
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