3 POWERFUL Doji Candlestick Patterns for (Profitable) Trading


hey hey what’s up my friend so welcome back to this training video where you’ll learn all about the doji candlestick pattern right Nolan what is the doji candlestick pattern the three different types of doji candlestick pattern and you must be aware of right how to recognize it and how to find profitable trading opportunities right using the doji candlestick pattern so all this and more continue watching okay so what is a doji candlestick pattern right so to put it simply right a doji candlestick pattern is when the candle has the same open end closing price so it looks something like this you can see any open and a closed are the same level so this is why you see a straight line on the chart and then this is the high and the low so one thing to take note is that a doji has no body on the candlestick pattern right but as you’ll see later on right there are other variations of a doji pattern right and it’s really not too important to concern yourself whether there is a small body or nobody no-nobody right no nobody right on the candlestick pattern right so let’s move on so one thing to share first right is you know don’t make this mistake right when you’re trading the doji candlestick pattern right often what I see traders do is that you know in the market right moves up higher higher higher higher and then there’s a doji then they assume right at hey right now the buyers and sellers are in equilibrium right the trend has stalled there’s a good chance it’s gonna reverse down lower right well not not quite yet because if you think about this a doji simply represents right and indecision on this particular candle a temporal indecision so it’s not gonna be easy for just one doji candlestick pattern to reverse an entire trend right so don’t make this mistake of you know just going shot just because you see a doji in an uptrend because more often than not right the trend will continue so be aware of this okay moving on right let’s look at the three different types of doji candlestick patterns and how you can create them and find profitable trading setups right the first one is what we call the dragonfly doji right so again right the close any open is the same level but the difference this time around for dragons oh gee is there the kendall has a lower wick right a lower wick so this means that you can see rejection of lower prices so let me share with you how it looks like so you can see that this is a dragonfly doji this portion over here simply shows you rejection of lower prices you can see that the market opened here then it came all the way down right and finally the buyers stepped in and pushed price back all the way up higher and finally closing at the same price level so this is in essence rejection of lower prices right tells you that the bias have you know suddenly stepped in right and push price up higher so based on the looks of this candlestick by in itself right this is a sign of strength because the buyers have you know last minute push the price up higher okay so how can you trick the dragonfly doji again whenever you’re trading candlestick patterns right I don’t recommend that you know you trade it in isolation always do it in the context of the market and I will share with you two types of market conditions then you can use to trade the dragonfly doji first and foremost right you can trade a dragonfly doji right and support okay so one thing to bear in mind is that recall right any candlestick pattern okay you have to understand you know what is the meaning behind it right so you know the exact definition of a to gravestone doji sorry dragonfly doji right is the open and closes at the same level and then you have a long lower wick right but what happens if you have a small body right nd the open is just slightly let’s see the open is just slightly below the closing price or the open is just slightly above the closing price does it make much difference to the candlestick pattern well not really right it conducts the meaning of the candlestick pattern is still pretty much the same right if the open is like in this case right this one disc and over here you can see that the the open right it’s slightly lower than the closing price does this mean that you know the the this pattern you can’t call it a dragonfly doji well if you will be exact right most traders would consider this a hammer but it’s somewhat a variation of the dragonfly doji because the meaning of the candlestick pattern understanding the meaning is what matters not trying to memorize the exact candlestick madam because if you try to do that right you’re gonna suffer in trading because there are hundreds and hundreds of patterns right so it’s more important to understand the meaning of the candlestick patterns and understand the variations that could occur I think that’s much more important than anything else okay so once you’ve understood this right here’s an example of a variation of a dragonfly doji right it occurred at this area of support notice that the price came into this area of support right rejection of lower prices and a market closed slightly higher which is a variation of the dragonfly doji all right next thing in the market you know well it higher back into this swing high and back into this area of resistance so if you under trait this pattern you can look to get long stop-loss right put it below right this low of the doji you don’t put it smack them directly below the low because you could get stopped up quite easily so give it some buffer put it somewhere here okay stop-loss you could put it somewhere here and if you are a swing trader you can look to take profits right at the nearest swing high or at resistance area okay so this is one way you can look to trade this at dragonfly doji right which is a variation otherwise known as a hammer an alternate way to create the dragonfly doji is when the market is in an uptrend right if you notice that the market is let’s say a birth of the 50 period moving average for example and it has the bounce of it you know repeatedly when the market comes back to this moving average right this is an area of value and this is where you could potentially right look to look for buy opportunity right in this case right you have a 12 to be exact this is a hammer but otherwise also known as obvious a variation of the dragonfly doji is a hammer right and see that the price comes into it right and then forms an entry trigger for you to go along again your stop-loss could put it a variation below this swing low somewhere here right and if you look you take profits right at the nearest swing high or you know even look to right this trend depending on your trade management all right so what’s really important over here right is to understand right yes a dragonfly doji by right right open and closest is the same level but you have to be open right to the possibilities in the market because I’ll be honest with you if you’re a Forex trader it’s unlikely you’ll see dragonfly doji happening often right it doesn’t happen often because for it to happen the open and the close has to be on sexy level which is quite rare so you have to be aware of the variations that could occur this is so so so important alright so that’s a dragonfly doji for you moving on right the mix doji candlestick pattern that I want to talk about is the gravestone doji alright the candle has T again right same open and seem close but this time rock it has a long upper wick so this means right that there is rejection of higher prices the market has rejected higher prices and it looks something like this alright you see that open and closes the same level and then a market when the market just opened the buyers were in control okay and then suddenly the sell us to control and push price down all the way down lower and finally closing near closing any open very mine right the gravestone doji again that could have been variations of it like for example like this or I can see that the market right this could be a let’s say this is a bearish clothes and looks something like this right so this again could be another variation of the gravestone doji right the meaning is pretty much the same right this time right you have a small body but again it still shows you rejection of higher prices that is the key thing down here and you have to you know kind of you know anticipate that you know there are variations that could occur especially in the FX markets so how can you trick the gravestone doji right so again right so since this is a rejection of higher prices you want to look for confluence right at levels where selling pressure could exist and for example over here this is an area of resistance right and over here you have a variation of the Graystone doji okay you can see the market rejected this higher prices and finally closing near the lows so we can go shot on the next Kendall stop-loss again above this highs right somewhere here and look to take profit right for example if you wanna take a swing in the street you can look to take profit just before this area of support so otherwise just capturing one swing in the market all right that’s possible another way you can trade that gravestone doji right is in a trending market right so for example if the market is in a downtrend you look for it to pull back to a moving average pull back to previous support and resistance or whatever right whichever you define as an area of value so in this case right this area of values are back towards this swing height right and in towards this are 50 period moving average then again you have a variation of the gravestone doji otherwise known as a shooting star there’s another variation right can go shot on mix candle again stop-loss right above this swing high and depending whether you wanna you know take a swing by exiting just below this swing low or you can even drill the move right by trilling using a moving average structure of the markets or whatever whichever preference then you want to trill the stop-loss right so you can see that the gravestone doji serves as the entry trigger right and after which depending how depending on your goals on the trade right we’re gonna capture your swing where they didn’t capture a trend right you can use the appropriate trade management or trailing stop loss technique okay so at this point in time right we have covered the gravestone doji and the dragonfly doji that’s what I’m going to talk about is the long-legged doji right so basically it looks like a normal standard doji right open close same level but this time around the upper and lower wick is very long right here very long so this means that there is strong in decisions in the market and it looks something like this it’s like a regular doji but this time round right the highs and lows of the candle is it’s very long okay so this means that there is strong indecision in the market so how do you trade the long-legged doji okay so I just want to share with you how it looks like first you can see that on this uh time frame this is a weekly timeframe it forms a long-legged doji here on the weekly timeframe usually it’s due to you know news release the market reacts to each spike up and down right that’s why you have a long-legged doji on your chart okay when you see this chap at that it can be difficult to just trade off it directly because the range of the candle is so wide and if you own the trait of it right your stop-loss is going to be very wide as well so usually if you see a long-legged doji I will not trade it on that timeframe in itself right what I’ll do instead is this is that you go down to a lower timeframe right like this is the daily timeframe a little you saw is the weekly timeframe this is not a daily timeframe and then you can actually use the highs and lows of the long-legged doji as a frame of reference there’s a frame of you know area of value a look to either buy or sell so in this case right you notice that the highs and the lows of the long-legged doji actually right became right support I mean this is resistance and support right on the lower timeframe so now you have support and resistance then you can trade off right and you can use these levels this areas on your chart to establish right a bias to establish positions to enter trick so in this case right the market came up higher into this area of resistance which is simply the height of the long-legged oh gee if formed right if formed this a bearish engulfing pattern right showing rejection of lower prices again you can go short on the mix candles open stop-loss either above this high above this uh this high over here right and then look to right now move down lower so this is how you can go about trading the long-legged doji and another way to do shown it to do it right is another extra tip right is that you know that this is pretty much a range right on the lower timeframe so what you can do is that you know if the market repeatedly tests the highs for example it repeatedly tests the heights of this long-legged doji that’s it highs that’s the highest that’s the highs this will tells you that you know hit the marketer is willing to buy it this higher prices and there’s a good chance that this market could break out higher and can look to trick the brick out of the highs okay but generally usually the first retest right if the move comes in very nice and strong right the level usually would hole and you know in Reverse lower but if the market comes back to the level repeatedly over a short period of time there’s a good chance that it could break up and you want to be pretty the breakout of the heights okay so let’s do a quick recap to what you’ve learned today right number one a doji is simply a candle right with the same open and close a dragonfly doji is a it’s a sign of strength because it shows you rejection of lower prices a variation of this candlestick pattern is the hammer right it can look to buy it at support or in an uptrend near a moving average or near you know previous resistance than support a gravestone doji right it’s a it’s a sign of weakness because it shows you rejection of lower prices can look to sell it at resistance or you know at moving average and it’s a truck and the long-legged doji usually is a very huge candle that you see on your chart right so usually I don’t trade off that timeframe itself you go down one timeframe lower you can better define the highs and lows which are supporting resistance and from then on right you can actually look right to find trading opportunities right based on the long-legged doji that form on the higher time frame okay now if you’ve enjoyed this video and you learn more you know practical trading strategies and techniques that work you can go down to my website right over here trading with Rainer calm alright trading with Rainer calm right and just scroll down a little bit you see these two trading guides one it’s an ultimate trend following kite and the what other one is the ultimate guide to price action trading right so if you want a little more about price action trading how do you know better time your entries and exits right download this guide you see over here just click this blue button right and I’ll send it to your email address however if you want to learn how to write massive trends and market right then download the ultimate trend-following guide right and again right I’ll send it to your email address completely free of charge alright so that’s pretty much it right if you’ve enjoyed this video right and you want to know what I mean if you have any questions for me leave it in the comment section below alright I’ll respond to you and anything if you enjoyed this video hit that thumbs up button and subscribe to my channel for more videos to come right so with that’s it I wish you good luck and good trading I’ll talk to you soon you

100 thoughts on “3 POWERFUL Doji Candlestick Patterns for (Profitable) Trading”

  1. hi Rayner, what time frame exactly do you use in most of your trades? I know you will answer me "it depends on your personality", but I want to know what time frame is your basis in this signals like doji, inside bars, etc. I think you need to mention it because it will confuse some. thanks man! you're a pro!

  2. Hi Rayner, thank you for the insights. Do you track Indian Stock markets / NIFTY? Any views /videos on NIFTY would help subscribers like us in India. Thanks in advance.!

  3. Acknowledged for your explanation. I would like to know the proper time frame for candlesticks. I have tried different time frames, but I am very prone to lose.
    Thank You,

  4. Forex is not a skill using patterns and strategies and here is why.
    The same combinations of underline reasons cannot in a predictable manner come together to create a particular graph/price movement and neither can other unknown combinations be predictable so as to create the same.
    Strategies or training or mentoring or signals are not able to comprehend, know, or calculate information they do not have access to and the information is not the post mono graph movement, the information required are the unknown underline reasons in play that will create a future graph/price movement.
    My point is simple! people may catch a run in their desired trading direction so as to make some pip value after the spread but if this happens its purely by chance /luck /coincidence and not skill.
    How can anyone claim skill when they cannot quantify what they are applying the skill to.
    The forex graph does not move in a similar or same way for the same reasons because what makes the graph move are unknown massive incomprehensible variations of underline reasons in accumulation.
    thanks Hayden

  5. You have just made my day, I've been trying to figure this candles out…

    I'm going to your website for the books, thank you very much.

  6. HELLO RAYNER, I HAVE A QUESTION IN THE CONTEXT OF YOUR VIDEO…IS THIS CALLED A BACKTESTING OF THE SYSTEM??WHETHER THE DOJI FORMED ON CHART WORKED OR NOT PREVIOUSLY??& THEN WE DEFINE THE SET UP CALLED SYSTEM…THANK YOU VERY MUCH ON THANKSGIVING…

  7. it's really great to see your video on this best explination ever i have , i am just newbie starting to learn how to trade especially crypto trade but not forex , my important question to you : what is time frame for indicators to be used for MA if i like short trade with time trade between 1 hrs till 4 hrs …pls kindly help me to set this on my trading view . many thanks for your help

  8. Doji means donkey in the sense that neither the bulls nor the bears succeeded in the market by
    closing at the open price. Now the market is donkish and the next moove can be sharp depending on the shape of its tail.

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  10. hey bro, but what does the meaning when gravestone doji formed in bottom/dowantrend?….. your quick reply is highly appreciated…

  11. You don't need to speculate when trading. Technical analysis will only help you so far. If you truly want to be successful in trading learn Fibonacci. News, earnings don't matter in the long run.

  12. nice video.. i am new to trading and after watching so many videos, someone explaining the patterns in the most logical way. Thanks man..

  13. You have a good heart to teach people the right way to do it. Its a great and rare thing. Please keep it up. Never stop.. 👊👊

  14. Hi dear friend, Thanks for all the nice instructions and teachings. I am from Korea South, what exchange platform can you recommend me to join for Forex trade? I registered and testing demo account in Alpari from England. Does it work well in Asia?

  15. I compared Iqoption candles and MT4 candles BUT Iqoption change the shapes of Candles so we can not use your strategy on Iqoption. because I compare shapes of candles on different Brokers plateform by keeping all open at a time, all others show same shapes but Iqoption show different shapes, so How can we apply your strategy on Iqoption ?

  16. Dojis are very powerful. combine these with other confirmation tools and learn how to use them and it is literally 99% gold

  17. This candlestick pattern which timeframe is effective, daily or weekly or 1 hr , 30 minutes, 15 minutes? Can this use for intraday trading with shorter timeframe like 15 , 5 , 3, 1 minutes??

  18. I see these signs but its rather too early from lines or its a brink of eye then the bounce is done and you are late on the bottom.

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