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3 POWERFUL Doji Candlestick Patterns for (Profitable) Trading - YouTube
Channel: Rayner Teo
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hey hey what's up my friend so welcome
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back to this training video where you'll
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learn all about the doji candlestick
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pattern right Nolan what is the doji
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candlestick pattern the three different
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types of doji candlestick pattern and
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you must be aware of right how to
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recognize it and how to find profitable
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trading opportunities right using the
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doji candlestick pattern so all this and
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more continue watching okay so what is a
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doji candlestick pattern right so to put
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it simply right a doji candlestick
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pattern is when the candle has the same
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open end closing price so it looks
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something like this you can see any open
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and a closed are the same level so this
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is why you see a straight line on the
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chart and then this is the high and the
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low so one thing to take note is that a
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doji has no body on the candlestick
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pattern right but as you'll see later on
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right there are other variations of a
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doji pattern right and it's really not
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too important to concern yourself
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whether there is a small body or nobody
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no-nobody right no nobody right on the
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candlestick pattern right so let's move
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on so one thing to share first right is
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you know don't make this mistake right
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when you're trading the doji candlestick
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pattern right often what I see traders
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do is that you know in the market right
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moves up higher higher higher higher and
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then there's a doji then they assume
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right at hey right now the buyers and
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sellers are in equilibrium right the
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trend has stalled there's a good chance
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it's gonna reverse down lower right well
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not not quite yet because if you think
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about this a doji simply represents
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right and indecision on this particular
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candle a temporal indecision so it's not
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gonna be easy for just one doji
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candlestick pattern to reverse an entire
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trend right so don't make this mistake
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of you know just going shot just because
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you see a doji in an uptrend because
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more often than not right the trend will
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continue so be aware of this okay moving
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on right let's look at the three
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different types of doji candlestick
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patterns and how you can create them and
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find profitable trading setups right the
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first one is what we call the dragonfly
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doji right so again right the close any
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open is the same level but the
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difference this time around for dragons
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oh gee is there the kendall has a lower
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wick right a lower wick so this means
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that you can see rejection of lower
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prices so let me share with you how it
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looks like so you can see that this is a
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dragonfly doji this portion over here
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simply shows you rejection of lower
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prices you can see that the market
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opened here then it came all the way
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down right and finally the buyers
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stepped in and pushed price back all the
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way up higher and finally closing at the
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same price level so this is in essence
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rejection of lower prices right tells
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you that the bias have you know suddenly
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stepped in right and push price up
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higher so based on the looks of this
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candlestick by in itself right this is a
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sign of strength because the buyers have
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you know last minute push the price up
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higher okay so how can you trick the
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dragonfly doji again whenever you're
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trading candlestick patterns right I
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don't recommend that you know you trade
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it in isolation always do it in the
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context of the market and I will share
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with you two types of market conditions
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then you can use to trade the dragonfly
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doji first and foremost right you can
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trade a dragonfly doji right and support
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okay so one thing to bear in mind is
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that recall right any candlestick
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pattern okay you have to understand you
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know what is the meaning behind it right
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so you know the exact definition of a to
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gravestone doji sorry dragonfly doji
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right is the open and closes at the same
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level and then you have a long lower
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wick right but what happens if you have
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a small body right nd the open is just
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slightly let's see the open is just
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slightly below the closing price or the
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open is just slightly above the closing
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price does it make much difference to
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the candlestick pattern well not really
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right it conducts the meaning of the
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candlestick pattern is still pretty much
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the same right if the open is like in
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this case right this one disc and over
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here you can see that the the open right
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it's slightly lower than the closing
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price does this mean that you know the
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the this pattern you can't call it a
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dragonfly doji well if you will be exact
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right most traders would consider this a
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hammer but it's somewhat a variation of
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the dragonfly doji because the meaning
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of the candlestick pattern understanding
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the meaning is what matters not trying
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to memorize
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the exact candlestick madam because if
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you try to do that right you're gonna
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suffer in trading because there are
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hundreds and hundreds of patterns right
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so it's more important to understand the
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meaning of the candlestick patterns and
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understand the variations that could
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occur I think that's much more important
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than anything else okay so once you've
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understood this right here's an example
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of a variation of a dragonfly doji right
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it occurred at this area of support
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notice that the price came into this
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area of support right rejection of lower
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prices and a market closed slightly
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higher which is a variation of the
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dragonfly doji all right next thing in
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the market you know well it higher back
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into this swing high and back into this
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area of resistance so if you under trait
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this pattern you can look to get long
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stop-loss right put it below right this
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low of the doji you don't put it smack
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them directly below the low because you
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could get stopped up quite easily so
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give it some buffer put it somewhere
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here okay stop-loss you could put it
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somewhere here and if you are a swing
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trader you can look to take profits
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right at the nearest swing high or at
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resistance area okay so this is one way
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you can look to trade this at dragonfly
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doji right which is a variation
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otherwise known as a hammer an alternate
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way to create the dragonfly doji is when
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the market is in an uptrend right if you
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notice that the market is let's say a
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birth of the 50 period moving average
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for example and it has the bounce of it
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you know repeatedly when the market
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comes back to this moving average right
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this is an area of value and this is
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where you could potentially right look
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to look for buy opportunity right in
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this case right you have a 12 to be
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exact this is a hammer but otherwise
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also known as obvious a variation of the
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dragonfly doji is a hammer right and see
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that the price comes into it right and
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then forms an entry trigger for you to
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go along again your stop-loss could put
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it a variation below this swing low
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somewhere here right and if you look you
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take profits right at the nearest swing
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high or you know even look to right this
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trend depending on your trade management
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all right so what's really important
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over here right is to understand right
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yes a dragonfly doji by right right open
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and closest is the same level but you
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have to be open right to the
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possibilities in the market because I'll
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be honest with you if you're a Forex
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trader it's unlikely you'll see
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dragonfly doji happening often right it
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doesn't happen often because for it to
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happen the open and the close has to be
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on
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sexy level which is quite rare so you
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have to be aware of the variations that
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could occur this is so so so important
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alright so that's a dragonfly doji for
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you moving on right the mix doji
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candlestick pattern that I want to talk
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about is the gravestone doji alright the
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candle has T again right same open and
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seem close but this time rock it has a
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long upper wick so this means right that
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there is rejection of higher prices the
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market has rejected higher prices and it
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looks something like this
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alright you see that open and closes the
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same level and then a market when the
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market just opened the buyers were in
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control okay and then suddenly the sell
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us to control and push price down all
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the way down lower and finally closing
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near closing any open very mine right
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the gravestone doji again that could
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have been variations of it like for
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example like this or I can see that the
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market right this could be a let's say
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this is a bearish clothes and looks
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something like this right so this again
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could be another variation of the
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gravestone doji right the meaning is
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pretty much the same right this time
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right you have a small body but again it
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still shows you rejection of higher
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prices that is the key thing down here
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and you have to you know kind of you
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know anticipate that you know there are
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variations that could occur especially
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in the FX markets so how can you trick
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the gravestone doji right so again right
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so since this is a rejection of higher
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prices you want to look for confluence
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right at levels where selling pressure
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could exist and for example over here
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this is an area of resistance right and
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over here you have a variation of the
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Graystone doji okay you can see the
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market rejected this higher prices and
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finally closing near the lows so we can
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go shot on the next Kendall stop-loss
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again above this highs right somewhere
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here and look to take profit right for
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example if you wanna take a swing in the
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street you can look to take profit just
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before this area of support so otherwise
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just capturing one swing in the market
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all right that's possible another way
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you can trade that gravestone doji right
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is in a trending market right so for
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example if the market is in a downtrend
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you look for it to pull back to a moving
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average
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pull back to previous support and
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resistance or whatever right whichever
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you define as an area of value so in
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this case right this area of values are
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back towards this swing height right and
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in towards this are 50 period moving
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average
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then again you have a variation of the
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gravestone doji otherwise known as a
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shooting star there's another variation
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right can go shot on mix candle again
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stop-loss right above this swing high
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and depending whether you wanna you know
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take a swing by exiting just below this
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swing low or you can even drill the move
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right by trilling using a moving average
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structure of the markets or whatever
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whichever preference then you want to
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trill the stop-loss right so you can see
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that the gravestone doji serves as the
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entry trigger right and after which
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depending how depending on your goals on
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the trade right we're gonna capture your
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swing where they didn't capture a trend
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right you can use the appropriate trade
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management or trailing stop loss
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technique okay so at this point in time
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right we have covered the gravestone
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doji and the dragonfly doji that's what
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I'm going to talk about is the
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long-legged doji right so basically it
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looks like a normal standard doji right
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open close same level but this time
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around the upper and lower wick is very
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long right here very long so this means
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that there is strong in decisions in the
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market and it looks something like this
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it's like a regular doji but this time
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round right the highs and lows of the
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candle is it's very long okay so this
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means that there is strong indecision in
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the market so how do you trade the
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long-legged doji okay so I just want to
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share with you how it looks like first
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you can see that on this uh time frame
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this is a weekly timeframe it forms a
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long-legged doji here on the weekly
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timeframe usually it's due to you know
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news release the market reacts to each
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spike up and down right that's why you
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have a long-legged doji on your chart
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okay
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when you see this chap at that it can be
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difficult to just trade off it directly
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because the range of the candle is so
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wide and if you own the trait of it
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right your stop-loss is going to be very
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wide as well so usually if you see a
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long-legged doji I will not trade it on
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that timeframe in itself right what I'll
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do instead is this is that you go down
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to a lower timeframe right like this is
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the daily timeframe a little you saw is
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the weekly timeframe this is not a daily
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timeframe and then you can actually use
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the highs and lows of the long-legged
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doji as a frame of reference there's a
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frame of you know area of value a look
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to either buy or sell so in this case
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right you notice that the highs and the
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lows of the long-legged doji actually
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right became right support I mean this
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is resistance and support
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right on the lower timeframe so now you
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have support and resistance then you can
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trade off right and you can use these
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levels this areas on your chart to
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establish right a bias to establish
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positions to enter trick so in this case
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right the market came up higher into
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this area of resistance which is simply
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the height of the long-legged oh gee if
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formed right if formed this a bearish
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engulfing pattern right showing
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rejection of lower prices again you can
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go short on the mix candles open
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stop-loss either above this high above
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this uh this high over here right and
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then look to right now move down lower
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so this is how you can go about trading
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the long-legged
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doji and another way to do shown it to
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do it right is another extra tip right
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is that you know that this is pretty
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much a range right on the lower
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timeframe so what you can do is that you
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know if the market repeatedly tests the
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highs for example it repeatedly tests
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the heights of this long-legged doji
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that's it highs
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that's the highest that's the highs this
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will tells you that you know hit the
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marketer is willing to buy it this
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higher prices and there's a good chance
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that this market could break out higher
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and can look to trick the brick out of
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the highs okay but generally usually the
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first retest right if the move comes in
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very nice and strong right the level
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usually would hole and you know in
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Reverse lower but if the market comes
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back to the level repeatedly over a
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short period of time there's a good
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chance that it could break up and you
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want to be pretty the breakout of the
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heights okay so let's do a quick recap
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to what you've learned today right
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number one a doji is simply a candle
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right with the same open and close a
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dragonfly doji is a it's a sign of
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strength because it shows you rejection
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of lower prices a variation of this
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candlestick pattern is the hammer right
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it can look to buy it at support or in
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an uptrend near a moving average or near
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you know previous resistance than
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support a gravestone doji right it's a
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it's a sign of weakness because it shows
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you rejection of lower prices can look
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to sell it at resistance or you know at
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moving average and it's a truck and the
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long-legged doji usually is a very huge
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candle that you see on your chart right
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so usually I don't trade off that
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timeframe itself you go down one
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timeframe lower you can better define
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the highs and lows which are supporting
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resistance and from then on right you
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can actually look right to find trading
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opportunities right based on the
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long-legged doji that form on the higher
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time frame
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okay now if you've enjoyed this video
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and you learn more you know practical
[805]
trading strategies and techniques that
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work you can go down to my website right
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over here trading with Rainer calm
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alright trading with Rainer calm right
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and just scroll down a little bit you
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see these two trading guides one it's an
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ultimate trend following kite and the
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what other one is the ultimate guide to
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price action trading right so if you
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want a little more about price action
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trading how do you know better time your
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entries and exits right download this
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guide you see over here just click this
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blue button right and I'll send it to
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your email address however if you want
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to learn how to write massive trends and
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market right then download the ultimate
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right I'll send it to your email address
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completely free of charge alright so
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that's pretty much it right if you've
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enjoyed this video right and you want to
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know what I mean if you have any
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questions for me leave it in the comment
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section below
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alright I'll respond to you and anything
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if you enjoyed this video hit that
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thumbs up button and subscribe to my
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channel for more videos to come right so
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with that's it I wish you good luck and
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good trading I'll talk to you soon
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you
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