Trading with candlestick patterns has long been popular. Among them, the Doji line is not only easy to find, but can also provide a high win rate when included in a trading strategy. Trading using candlestick patterns is also highly recommended for beginners.
Here, we introduce an EA that is using Doji patterns for generating signals and taking trades.
What is a Doji line (pattern) in the first place?
A Doji pattern is candlestick that looks just like a straight vertical line. In other words, if the opening price and closing price are the same value, it is considered a Doji pattern. This coincidence may indicate a market that is indecisive or confused and they particularly appear often at the end of a trend. Many professional traders, therefore, pay attention to Doji patterns when they see them on the chart.
This EA determines whether to place an order according to the following conditions:
- 1. Doji pattern occurs
- 2. Check if you already have a position (do not trade when you have a position)
- 3. The previous candlestick closing price was above/below the high/low price of the doji pattern
- 4. Place a buy order or a sell order accordingly.
- Also, the doji pattern must have occurred within the last three candlesticks. The previous four doji patterns are invalid.
Target is set by parameter.
Stop loss is set as follows:
- In the case of a buy order, it is set to the low price of 13 candlesticks. If this is above 50 pips, set the stop loss to 50 pips.
- In the case of a sell order, it is set to the high price of the 13 candlesticks before. If this is above 50 pips, set the stop loss to 50 pips.
- TargetProfit - Defines target
- TimeOpen - Trade starting time
- TimeClose - Trade ending time
Note: Back test results may be optimized. Also, the back test results may differ from the trading results when using a live trading account. Please understand this point before using this EA.
Download the "Doji EA" for free from the button below
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.