This doji indicator for MT4 (Metatrader) may help many of you traders that find difficulty in identifying doji patterns on your candlestick chart. The download link is at the very bottom so you have to scroll down to it.
I wrote a post titled 6 Awesome Doji Candlestick Patterns where I explained the 6 types of doji candles that you can find on any chart and how to trade them.
Keep in mind that the doji is about indecision in the market. They can be found throughout your chart and for the most part, they hold no special meaning.
The key is finding this candlestick in locations of the chart that have potential to be points of change in the market. They are valid in both bearish and bullish scenarios and can be found at full trend reversals.
How To Use The Doji Indicator Mt4
Once you install the doji indicator on your chart, it will look like what is shown on the 1 hr chart of EURUSD. You can see the small body and longer shadows on the doji candlesticks that have been highlighted.
If you don’t know how to install an mt4 indicator into your charts, you can learn how to do that here: how to install mt4 indicators.
The doji pattern will show doji candlestick patterns in all time frames.
As with most candlestick patterns, higher time frame charts along with good trading locations such as support and resistance, can increase the odds of a successful trade.
Input Setting Of The Doji Indicator
The doji indicator comes with inputs where you can chance a few settings as shown below. I leave that to you to play around with the settings and see what impact it has on your chart.
Keep in mind there is no best setting for this indicator. Just adjust what is important for you so you can easily see the highlighted candlesticks on your chart.
How To Trade Using The Doji Pattern Indicator
If any of your Forex trading strategies uses candlesticks like doji for trade confirmation, then using this indicator can help you identify this candlestick on your charts and trade them.
Here are a handful of Forex strategies where you may find use of in the doji pattern indicator:
- trendline trading strategy
- diagonal channel forex trading strategy
- support and resistance forex trading strategy
- wolfe wave forex trading strategy
This indicator will work just as well for day trading as it will for swing trading. The idea behind the indicator is to simply alert you to the presence of indecision in the market.
Your trading plan and strategy may benefit from seeing this information as indecision, as seen in ranging markets, will eventually resolve into momentum moves.
You may choose to use it for price action trading and not simply confirmation. Some traders may use it as a reversal signal and choose to play a pending order above or below the candlestick as a trade entry.
Will you take into account whether you are trading in an uptrend or downtrend?
If so, may want to wait until use see a doji candlestick in the color of the trend direction you want to trade.
- If looking for a long entry into an uptrend, ignore all red dojis and wait for a bullish doji (green)
- You want to short the market? Wait until the doji color is bearish (red)
Download Link For Doji Candlestick Pattern Indicator
Here’s the download link for the doji pattern indicator: doji_reader_2
Technical analysis of any market can be a challenge so I hope you find use in this MT4 trading indicator.
Kind sir, I beg to differ on your definition of a Doji. I am understanding that a Doji is equilibrium in the market, where supply and demand are in unison. However, I am in agreement that Doji’s offer excellent trading opportunities. since markets are always trying to breakout or pullback to create order flow.
A doji has four data points: high, low, open, close. The presence of a high and low indicate there was indecision – as in no conviction in either direction.
Steve Nison : “A doji really reflects indecision and at that point the market becomes tired.”
Keep in mind that any singular candlestick that forms is dependent on the time frame you are looking at.