Introduction to the Doji Candle Detection Indicator
Doji patterns are candlestick patterns with a very small body relative to other candles. This candlestick pattern is a telltale sign of price rejection especially when it forms on an area where price may reverse.
The Doji Candle Detection Indicator is a tool which helps traders objectively identify doji patterns.
What is the Doji Candle Detection Indicator?
The Doji Candle Detection Indicator is a technical trading tool which was developed to help traders identify doji candlestick patterns.
This indicator identifies doji patterns and indicates it by plotting a lime horizontal bar on a separate indicator window in line with the doji candlestick pattern on the price chart.
It also provides signal alerts and push Email alerts whenever it detects a doji pattern.
How the Doji Candle Detection Indicator Works?
The Doji Candle Detection Indicator has an algorithm which detects doji candlestick patterns based on the technical description of a doji. These are candlestick patterns with an extremely small body relative to other candlesticks. To identify this pattern, the indicator uses a threshold multiplied to the Average True Range (ATR) of the tradeable instrument. If the body of the candle does not exceed the threshold, then the candle is considered a doji pattern. The indicator would then plot a lime bar to indicate the availability of the doji pattern. It would also trigger the signal alert and the Email push notification.
How to use the Doji Candle Detection Indicator for MT4
The Doji Candle Detection Indicator has several options within its indicator settings which can be modified.
“Signal Color” allows users to modify the color of the bar that the indicator would plot.
“MT4 Alert” toggles the alert notification on or off.
“Email Alert” toggles the Email push notification on or off.
Doji candles can be used as a possible reversal signal indication since doji patterns can be considered as an indication of price rejection. However, it should be in confluence with other technical analysis indications. It could be that the doji forms at an oversold or overbought level. It could also be a doji on a support or resistance level or a doji on a dynamic support or resistance level on a pullback within a trending market.
Buy Trade Setup
When to Enter?
Open a buy order whenever a doji pattern is identified by the Doji Candle Detection Indicator in confluence with another bullish technical analysis indication.
When to Exit?
Close the trade as soon as price action shows signs of a possible bearish reversal.
Sell Trade Setup
When to Enter?
Open a sell order whenever a doji pattern is identified by the Doji Candle Detection Indicator in confluence with another bearish technical analysis indication.
When to Exit?
Close the trade as soon as price action shows signs of a possible bullish reversal.
Conclusion
The doji pattern can indicate a reversal, but it is not perfectly accurate. This is why it is important that it is traded in confluence with another technical analysis indication. It should only be a part of a bigger trading strategy instead of a standalone entry signal.
MT4 Indicators – Download Instructions
Doji Candle Detection Indicator for MT4 is a Metatrader 4 (MT4) indicator and the essence of this technical indicator is to transform the accumulated history data.
Doji Candle Detection Indicator for MT4 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT4 Strategies
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How to install Doji Candle Detection Indicator for MT4.mq4?
- Download Doji Candle Detection Indicator for MT4.mq4
- Copy Doji Candle Detection Indicator for MT4.mq4 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader 4 Client
- Select Chart and Timeframe where you want to test your MT4 indicators
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 4 Client
- Right click on Doji Candle Detection Indicator for MT4.mq4
- Attach to a chart
- Modify settings or press ok
- Indicator Doji Candle Detection Indicator for MT4.mq4 is available on your Chart
How to remove Doji Candle Detection Indicator for MT4.mq4 from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
Doji Candle Detection Indicator for MT4 (Free Download)
Click here below to download:
La entrada Doji Candle Detection Indicator for MT4 se publicó primero en ForexMT4Indicators.com.
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