Doji candlestick trading is perhaps one of the simplest ways to earn money with either stock or foreign exchange trading. Trading systems based totally on candlestick charts can be straightforward to implement and yet intensely effective.

Doji candlestick systems use the chart without too many other signals. The doji leaps out at the eye extraordinarily obviously so that you can see your 1st trading signal at a glance. Naturally, you would then look across the prior candles to test that the market is in the right position for a trade. We will cover that in a second. But much of this can be done awfully fast. This is a big advantage in day trading, and it is a day trading methodology known as doji reversal that we’re going to be looking at here.

So first, identifying the doji. The doji candlestick marks a period where the open and shut costs are the same. This suggests that there’s no candle body, just the 2 wicks to the highest and lowest prices, and a horizontal line at the open and shut cost.

Thus the doji is in the shape of a cross. However, when it occurs in an upward or downward trending market it can predict retracement or reversal, that the trader can profit from..