Use a Doji Candle Confirmator to Make It Easier to Determine the Up / Down Trend

Candle Doji is one of the patterns that are commonly found on charts. Because it signifies consolidation, you need to use a Doji candle confirmator to confirm the signal.

Speaking of candlestick patterns, not all patterns are complicated, there are also simple ones. One of them is the Doji candle. This pattern is usually used as an indication of consolidation. Only by going through a drawn candlestick pattern, you can already set the square to open positions. But to know the direction of price movements better, you still need to use other indicators as Doji candle confirmers. 

Understanding the Doji Candle Formation 

Doji Formation is one of the most obvious trading signals in candlestick patterns. Since it was used for trading rice commodities in Japan hundreds of years ago, this formation is still considered a valid trading signal until now. Doji is a candlestick pattern that is formed because the Open price and the Close price are the same or almost the same, so this candle seems to have no body. This formation is often seen on trading charts and does not depend on the time frame. Doji can form on weekly, daily or even 5-minute charts.

Doji formations are formed when the market is consolidating or hesitating about the direction of the next price movement. Here it seems clear that the Bullish and Bearish sentiments are in a balanced state, or between Buyers and Sellers waiting for the next price movement. This causes the market to consolidate, whether to continue price movements in the direction of the previous trend, or will make a price reversal (reversal). Therefore, Doji is usually considered a signal of consolidation. 

FORMATION DOJI


To find out the direction of the next price movement, confirmation of the candlestick bar formed after the Doji is needed. If the candle formed after the Doji is in the direction of the trend before the Doji, then what usually happens is that the trend continues. Conversely, if the candle after the Doji is opposite to the trend formed before the Doji, then it can be assumed that the next price movement will experience a reversal. So, the Doji formation does not always imply a reversal of the trend,

but it can also signal the continuation of the trend, depending on the confirmation of the next candlestick bar. Besides confirming the third candle, you can also use the following indicators as Doji candle confirmers.


I am a YouTuber in the field of shares of all platforms trying to share a few tricks to analyze Canle Doji, hopefully what I have to say in this article can help you in trading
Use a Doji Candle Confirmator to Make It Easier to Determine the Up / Down Trend Use a Doji Candle Confirmator to Make It Easier to Determine the Up / Down Trend Reviewed by Kampus Seo on December 23, 2019 Rating: 5

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