How to Day Trade The DoJi Pattern

Day-Trading With the {Power|Potential} of the  candlestick chart pattern the Doji
{Early|Early on} in my trading {career|profession|work|line of business} {while|whilst|even though} I was {still|nevertheless|even now|nonetheless} {rather|alternatively|somewhat} {new|beginner} I paid for a {course|training course} on a trading {method|technique|approach|process|system|strategy}  on an “inside bar”, {which|which usually} is a bar that {has|features} a lower high and higher low {than|compared to} the {previous|preceding} bar. I {thought|believed|considered|imagined} that the {method|technique|system} {looked|appeared|seemed} {promising|encouraging} {and|as well as|along with} the {idea|concept|strategy} {seemed|appeared|looked} rather {simple|easy|uncomplicated}, {once|as soon as|the moment} price exceeds the high or low of the inside bar {then|after that|subsequently} you would {buy|purchase} or sell. A stop would then be set {just|simply} {beyond|past} the other side of the inside bar. {Unfortunately|Regretably}, even {though|despite the fact that} price {would|would probably|would most likely} {often|usually|generally|regularly|oftentimes} {might|could possibly|may possibly|may perhaps} break the high or low price it still tended to consolidate {afterward|subsequently} {rather|instead} {than|as compared to} make a {strong|robust} move. It {obviously|clearly|certainly|definitely} {wasn’t|was not} as definitive of a {move|trend} as I was {originally|initially|at first|in the beginning} {led|brought} to {believe|think|feel|consider}. {Additionally|Furthermore|Moreover|On top of that|Besides that}, the {method|technique|procedure} {placed|positioned|located} the trade {entry|entry point} {late|delayed} in the {move|trend} and {when|whenever|any time|in the event that} the trade did {fail|lose out}, which was {often|frequent|normal|typical|regular|most likely}, it {would|would most likely} {result|end up} in losses that were {a|some sort of} bit {rich|too costly} for my {taste|budget}. {Particularly|Especially} when they were {repetitive|repeated|consistent|constant}. In very short time I decided to {abandon|avoid} {this form|this kind of} of trading.
In time I also {learned|discovered|gained knowledge} about {another|one more|yet another|a different} bar {called|known as|referred to as|named} the Doji, which is {used|applied} in candlestick charts. {Although|Even though|Despite the fact that} candlestick {methodology|strategy|scheme} uses this bar in {quite|rather|fairly} a {variety|range|wide variety} of combinations of chart patterns that made {learning|mastering|grasping} {rather|somewhat|relatively} {complex|complicated|sophisticated}, I  took note of one very simple way it could be applied and returned to the earlier concept of trading the inside bar using the Doji bar instead.
A Doji bar is {simply|basically} {defined|described|identified} as a price bar with a similar open and close. On a chart it {looks|appears} very much {like|just like} a plus sign as used in {mathematical|numerical} addition. {Often|Usually|Generally} it is an inside bar, {but|however} not {always|at all times}. {What|Just what|Precisely what|Just what exactly} {makes|tends to make|causes|helps make} this bar {unique|distinctive|one of a kind|exceptional} is that the open and close {are|tend to be} {typically|normally} the exact {same|identical} price {or|or perhaps} at {least|very least} {extremely|particularly} close, so it {is|can be|is normally} {easy|simple} to {identify|recognize|discover|distinguish} and {find|locate|look for|pick|search for} on a chart. {Because|Simply because|Due to the fact} it {begins|starts} and {ends|closes} with the {same|similar} price it {acts|works|operates|behaves} as a {minor|modest} {equivalent|comparative} to a support and resistance level. It was this very {fact|reality} {that|which} gave the Doji a {higher|greater} rate of {success|achieving success} {when|whenever} {using|employing} the {rules|guidelines} of the inside bar {method|technique|process|procedure}. {With|Along with|Together with} a {definitive|specified} price level the {likelihood|possibility|chances} of {violating|deviating} it {after|right after|following|immediately after} price had moved in a sideway pattern was very probably very small. This {reduced|decreased|diminished} the failure rate and consequently losses {dramatically|significantly|considerably}.
As with any support and resistance level, the Doji open/close price can be {used|made use of} to {signal|indicate} an entry based on the direction that price {gravitates|trending} away from that price level. A move in upward trend above the Doji high would signal a buy while a move in downward trend below the Doji low would signal a sell.
Even better than this, an earlier entry can be made if price has already demonstrated a {propensity|tendency} for trending and the Doji itself is the recent high or low of the trend. So you can implement the strategy as follows :
{If|In the event that} the market is {strongly|powerfully|clearly} trending to the upside then buy at the open if the {next|following|subsequent} bar opens at Doji closing price or higher.
{If|In the event that} the market is {strongly|powerfully} trending downside then sell at the open if the {next|following|subsequent|up coming|succeeding} bar opens at Doji closing price or lower.
Usually whenever a market is already in a strong trend then a Doji will typically result in only a momentary consolidation {followed|succeeded} by a continuation of the {prior|previous|preceding} trend. Statistically, this is what the odds favor so entering as early as the following bars open will usually result in a profitable position very quickly. A stop can be placed just beyond the Doji bar high or low which is typically within a very close range, so loses are kept at a bare minimum if the trade should fail.
Although entering on the following bars open will have a higher percentage of failures where your stop is activated, failures are still rather infrequent.
This is a {simple|straightforward} strategy that is {easy|simple} to learn and {implement|put into practice} without interfering with any other trading {approach|tactic}. Consider it the next {time|occasion} you see a little plus sign {show up|display} up on your candlestick chart. It could be a profitable opportunity to make some money and increase the funds in your bank account.Day-Trading With the {Power|Potential} of the  candlestick chart pattern the Doji
{Early|Early on} in my trading {career|profession|work|line of business} {while|whilst|even though} I was {still|nevertheless|even now|nonetheless} {rather|alternatively|somewhat} {new|beginner} I paid for a {course|training course} on a trading {method|technique|approach|process|system|strategy}  on an “inside bar”, {which|which usually} is a bar that {has|features} a lower high and higher low {than|compared to} the {previous|preceding} bar. I {thought|believed|considered|imagined} that the {method|technique|system} {looked|appeared|seemed} {promising|encouraging} {and|as well as|along with} the {idea|concept|strategy} {seemed|appeared|looked} rather {simple|easy|uncomplicated}, {once|as soon as|the moment} price exceeds the high or low of the inside bar {then|after that|subsequently} you would {buy|purchase} or sell. A stop would then be set {just|simply} {beyond|past} the other side of the inside bar. {Unfortunately|Regretably}, even {though|despite the fact that} price {would|would probably|would most likely} {often|usually|generally|regularly|oftentimes} {might|could possibly|may possibly|may perhaps} break the high or low price it still tended to consolidate {afterward|subsequently} {rather|instead} {than|as compared to} make a {strong|robust} move. It {obviously|clearly|certainly|definitely} {wasn’t|was not} as definitive of a {move|trend} as I was {originally|initially|at first|in the beginning} {led|brought} to {believe|think|feel|consider}. {Additionally|Furthermore|Moreover|On top of that|Besides that}, the {method|technique|procedure} {placed|positioned|located} the trade {entry|entry point} {late|delayed} in the {move|trend} and {when|whenever|any time|in the event that} the trade did {fail|lose out}, which was {often|frequent|normal|typical|regular|most likely}, it {would|would most likely} {result|end up} in losses that were {a|some sort of} bit {rich|too costly} for my {taste|budget}. {Particularly|Especially} when they were {repetitive|repeated|consistent|constant}. In very short time I decided to {abandon|avoid} {this form|this kind of} of trading.
In time I also {learned|discovered|gained knowledge} about {another|one more|yet another|a different} bar {called|known as|referred to as|named} the Doji, which is {used|applied} in candlestick charts. {Although|Even though|Despite the fact that} candlestick {methodology|strategy|scheme} uses this bar in {quite|rather|fairly} a {variety|range|wide variety} of combinations of chart patterns that made {learning|mastering|grasping} {rather|somewhat|relatively} {complex|complicated|sophisticated}, I  took note of one very simple way it could be applied and returned to the earlier concept of trading the inside bar using the Doji bar instead.
A Doji bar is {simply|basically} {defined|described|identified} as a price bar with a similar open and close. On a chart it {looks|appears} very much {like|just like} a plus sign as used in {mathematical|numerical} addition. {Often|Usually|Generally} it is an inside bar, {but|however} not {always|at all times}. {What|Just what|Precisely what|Just what exactly} {makes|tends to make|causes|helps make} this bar {unique|distinctive|one of a kind|exceptional} is that the open and close {are|tend to be} {typically|normally} the exact {same|identical} price {or|or perhaps} at {least|very least} {extremely|particularly} close, so it {is|can be|is normally} {easy|simple} to {identify|recognize|discover|distinguish} and {find|locate|look for|pick|search for} on a chart. {Because|Simply because|Due to the fact} it {begins|starts} and {ends|closes} with the {same|similar} price it {acts|works|operates|behaves} as a {minor|modest} {equivalent|comparative} to a support and resistance level. It was this very {fact|reality} {that|which} gave the Doji a {higher|greater} rate of {success|achieving success} {when|whenever} {using|employing} the {rules|guidelines} of the inside bar {method|technique|process|procedure}. {With|Along with|Together with} a {definitive|specified} price level the {likelihood|possibility|chances} of {violating|deviating} it {after|right after|following|immediately after} price had moved in a sideway pattern was very probably very small. This {reduced|decreased|diminished} the failure rate and consequently losses {dramatically|significantly|considerably}.
As with any support and resistance level, the Doji open/close price can be {used|made use of} to {signal|indicate} an entry based on the direction that price {gravitates|trending} away from that price level. A move in upward trend above the Doji high would signal a buy while a move in downward trend below the Doji low would signal a sell.
Even better than this, an earlier entry can be made if price has already demonstrated a {propensity|tendency} for trending and the Doji itself is the recent high or low of the trend. So you can implement the strategy as follows :
{If|In the event that} the market is {strongly|powerfully|clearly} trending to the upside then buy at the open if the {next|following|subsequent} bar opens at Doji closing price or higher.
{If|In the event that} the market is {strongly|powerfully} trending downside then sell at the open if the {next|following|subsequent|up coming|succeeding} bar opens at Doji closing price or lower.
Usually whenever a market is already in a strong trend then a Doji will typically result in only a momentary consolidation {followed|succeeded} by a continuation of the {prior|previous|preceding} trend. Statistically, this is what the odds favor so entering as early as the following bars open will usually result in a profitable position very quickly. A stop can be placed just beyond the Doji bar high or low which is typically within a very close range, so loses are kept at a bare minimum if the trade should fail.
Although entering on the following bars open will have a higher percentage of failures where your stop is activated, failures are still rather infrequent.
This is a {simple|straightforward} strategy that is {easy|simple} to learn and {implement|put into practice} without interfering with any other trading {approach|tactic}. Consider it the next {time|occasion} you see a little plus sign {show up|display} up on your candlestick chart. It could be a profitable opportunity to make some money and increase the funds in your bank account.
Here is the story of how I learned to implement the Doji pattern in my day trading: Early on in my trading profession while I was still somewhat a beginner I paid for a training course on strategy on an “inside bar”, which usually is a bar that features a lower high and higher low compared to the preceding bar. I believed that the technique seemed encouraging as well as the concept appeared| rather easy, as soon as the price exceeds the high or low of the inside bar subsequently you would purchase sell. A stop would then be set simply past the other side of the inside bar. Regretably, even despite the fact that price would most likely break the high or low price it still tended to consolidate later instead of making a robust move. It clearly was not a definitive trend as I was initially came to think. On top of that, the procedure positioned the trade entry point delayed in the trend and in the event that the trade did lose out, which was frequent, it would most likely end up in losses that were some sort of bit too costly for my budget. Especially when they were repeated. In very short time I decided to avoid this kind of trading.
In time I also discovered about yet another different bar known as the Doji, which is applied in candlestick charts. Despite the fact that candlestick strategy uses this bar in rather wide variety of combinations of chart patterns that made mastering them somewhat complicated I took note of one very simple way it could be applied and returned to the earlier concept of trading the inside bar using the Doji bar instead.
A Doji bar is basically identified as a price bar with a similar open and close. On a chart it appears very much just like a plus sign as used in numerical addition. Generally it is an inside bar, however not at all times. Precisely what tends to make this bar distinctive is that the open and close tend to be normally the exact identical price or perhaps at very least extremely close, so it is normally simple to recognize and locate on a chart. Simply because it begins and closes with a similar price it behaves as a modest comparative to a support and resistance level. It was this very reality which gave the Doji a greater rate of achieving success whenever employing the guidelines of the inside bar procedure. Together with a specified price level the possibility of deviating away from it immediately after price had moved in a sideway pattern was probably very small. This diminished the failure rate and consequently losses significantly.
As with any support and resistance level, the Doji open/close price can be made use of to indicate an entry based on the direction of the price trending away from that price level. A move in upward trend above the Doji high would signal a buy while a move in downward trend below the Doji low would signal a sell.
Even better than this, an earlier entry can be made if price has already demonstrated a tendency for trending and the Doji itself is the recent high or low of the trend. So you can implement the strategy as follows :
In the event that the market is powerfully trending to the upside then buy at the open if the following bar opens at Doji closing price or higher.
In the event that the market is clearly trending to the downside then sell at the open if the succeeding bar opens at Doji closing price or lower.
Usually whenever a market is already in a strong trend then a Doji will typically result in only a momentary consolidation {followed|succeeded} by a continuation of the preceding trend. Statistically, this is what the odds favor so entering as early as the following bars open will usually result in a profitable position very quickly. A stop can be placed just beyond the Doji bar high or low which is typically within a very close range, so loses are kept at a bare minimum if the trade should fail.
Although entering on the following bars open will have a higher percentage of failures where your stop is activated, failures are still rather infrequent.
This is a straightforward} strategy that is simple to learn and put into practice without interfering with any other trading tactic. Consider it the next time you see a little plus sign displayed up on your candlestick chart. It could be a profitable opportunity to make some money and increase the funds in your bank account.

 

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