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How to correctly use Doji candlesticks to spot a reversal?

  • #141
  • Jun 16, 2014 8:05pm Jun 16, 2014 8:05pm
Quoting 60minuteman
the use of the past to predict future price movements only exists because of humans intense fear of uncertainty and an obsessive need to quantify everything. There's absolutely zero proof of lines on a chart having any edge whatsoever, these lines are ignored as often as they are respected - traders are capable of seeing exactly what they want to see and nothing contrary to it.
I would agree on just a line itself in terms of its respectability, what is being discussed is AREAS of S/R not just a singular point on a chart.
  • #142
  • Jun 16, 2014 8:06pm Jun 16, 2014 8:06pm
Quoting JoeNY
Yup other pairs. I'm not a touch traders so it does me no good but that Doji on the line is a touch traders dream to go short, I guess. Yes New York... {quote}
Been holding a couple since early London.

Daily double top, serious multi year SR. Yeah, good enough RR for me to take a retrace short before the next trend launch. As well as other pairs.
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Ghost Rider - WWTBMD?
  • #143
  • Jun 16, 2014 8:06pm Jun 16, 2014 8:06pm
Nice.... It's a huge pin on H4

Quoting albchr
{quote} Been holding a couple since early London. Daily double top, serious multi year SR. Yeah, good enough RR for me to take a retrace short before the next trend launch. As well as other pairs. {image}
SPC * Swollen PocketZ Crew!
  • #144
  • Jun 16, 2014 8:13pm Jun 16, 2014 8:13pm
Quoting albchr
{quote} Been holding a couple since early London. Daily double top, serious multi year SR. Yeah, good enough RR for me to take a retrace short before the next trend launch. As well as other pairs. {image}

I was way off on this one too...

http://www.forexfactory.com/showthre...48#post7533248
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #145
  • Jun 16, 2014 8:18pm Jun 16, 2014 8:18pm
Quoting JoeNY
Nice.... It's a huge pin on H4 {quote}
Yeah with an SR test/reject next. I feel pretty good about it as of now.

Anyway, apologies thread. I know this is off topic ...
Ghost Rider - WWTBMD?
  • #146
  • Jun 16, 2014 8:21pm Jun 16, 2014 8:21pm
Quoting Magix
{quote} I was way off on this one too... http://www.forexfactory.com/showthre...48#post7533248
Well, yeah but....bro...you were under the weather 4 days ago man. We'll cut you a little slack but do try not to let it happen again...ok? You know the accuracy we demand around here.
Ghost Rider - WWTBMD?
  • #147
  • Jun 16, 2014 8:22pm Jun 16, 2014 8:22pm
I just wanted to chime in here to say that many of you are mistaken about pinbars being worthless. I saw a few examples posted by Majix as evidence of pinbar failures and would agree that those were failures but, those examples are a bit misleading in that they were not pinbar trades I would have taken. Yes trading every pinbar you see will kill you and even some at S/R areas will too...it is imperative you get more confirmation of what the pinbar is telling you.

I haven't even seen it discussed at the James16 thread....but there is a way to get the good trades and miss the turds.
I don't want to write a book here but my point is that just because something may not work for YOU doesn't mean it doesn't work. Maybe you just never figured it out....
Seems as though there are some cocky people around here that think there is only one way to skin a cat.....just saying
  • #148
  • Jun 16, 2014 8:27pm Jun 16, 2014 8:27pm
Quoting dart
I just wanted to chime in here to say that many of you are mistaken about pinbars being worthless. I saw a few examples posted by Majix as evidence of pinbar failures and would agree that those were failures but, those examples are a bit misleading in that they were not pinbar trades I would have taken. Yes trading every pinbar you see will kill you and even some at S/R areas will too...it is imperative you get more confirmation of what the pinbar is telling you. I haven't even seen it discussed at the James16 thread....but there is a way to get...

lol

Welcome to the conversation dude.

Give us a tar whopping, on where we are wrong...

You might have the most relevant post...sad to see we've gotten 11 pages without any actual supporters of the phenomenon...

Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #149
  • Jun 16, 2014 8:31pm Jun 16, 2014 8:31pm
Quoting Magix
{quote} Well... To my own credit... If we flip back a few pages in this thread...I did have a conversation with Mr.Scott on EURUSD... I was a little closer on this one. Link {image}
Oh I saw it brother. It was just a post or two beyond that I jumped on board here. Still though, 1.3 pips off? Well ... at least it's a sign you're feeling better....
Ghost Rider - WWTBMD?
  • #150
  • Jun 16, 2014 8:39pm Jun 16, 2014 8:39pm
Quoting Magix
{quote} I have posted, almost to the pip, both the top and bottom of AUDUSD in it's playfield today...BEFORE MARKET OPENED. I do this with other pairs, and ahead of market...all of the time. {image}
open new thread in trading systems. you will gain followers. in the mean time don't jack off.... go for the actual pussy.
  • #151
  • Jun 16, 2014 8:40pm Jun 16, 2014 8:40pm
Quoting albchr
{quote} Oh I saw it brother. It was just a post or two beyond that I jumped on board here. Still though, 1.3 pips off? Well ... at least it's a sign you're feeling better....

Not really...just felt like my ribs collapsed...

Whoaaaaaaaaaa....

I think it's gunna be another short week here...

Have a great night...

Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #152
  • Jun 16, 2014 8:44pm Jun 16, 2014 8:44pm
if you choose the fitting start- and stoptime to catch the right levels of price the AUD/USD chart will show a doji here:
unfortunately NO standart TF will catch this...

so a doji on 4h or daily TF is just a coincidence of the candle indicator

as it is a coincidence the probability is like a cointoss - and exactly this brings us back to support and resistance............................
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just do it
  • #153
  • Jun 16, 2014 8:45pm Jun 16, 2014 8:45pm
Quoting Magix
{quote} Not really...just felt like my ribs collapsed... Whoaaaaaaaaaa.... I think it's gunna be another short week here... Have a great night...
Take care of yourself brother. Don't bother with the mindless here. I know it's just exercise for you and all but...well...you know.
Ghost Rider - WWTBMD?
  • #154
  • Jun 16, 2014 9:00pm Jun 16, 2014 9:00pm
Quoting thodie
if you choose the fitting start- and stoptime to catch the right levels of price the AUD/USD chart will show a doji here: unfortunately NO standart TF will catch this... so a doji on 4h or daily TF is just a coincidence of the candle indicator as it is a coincidence the probability is like a cointoss - and exactly this brings us back to support and resistance............................ {image}
I agree thodie. In fact I don't put a lot of weight in any "time based" candle really. When you really think about it, a candle is just another lagging indicator. A small lag but a lag non the less. First price moves, then the candle is painted on the screen. Simply a visual of past price movements. Pins, dojis etc etc are great for catching your eye as your walking by the screen. For me, that's about it.

To me, each candle regardless of TF is a battle between bulls and bears. And for actually finding out who's winning the battle in any given bar, time based candles are misleading at best. Fire up a tick chart some time. At least they have the same amount of data per bar and can give you an upfront "hint" as to who's winning all the little battles as price moves along. I just started working with them and I find them fascinating in the study of moving price structure.

But the bottom line is, none of it means much without SR.
Ghost Rider - WWTBMD?
  • #155
  • Jun 16, 2014 9:23pm Jun 16, 2014 9:23pm
Quoting Ponzi Jr
The occurrence of a Doji candlestick is often regarded as a sign of a potential reversal. However, other times it is actually just a brief period during which bulls/bears are catching their breath - after which the initial trend resumes. What other signs are there that a doji signifies that a reversal is about to occur?

A Doji is a candle line. I prefer to think in terms of multiple candle lines forming patterns.

Check out the chart below.

The shaded area is a valid "Fakie" pattern. One of the four candle lines in this particular pattern happens to be a Doji. Note that the Doji line is formed by price moving into the Supply/Demand Delta Zone and then moving out. This satisfies the requirement that at least one pip/tick of the entry signal be on or in the Supply/Demand Delta Zone (aka Entry Signal Zone).
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Without VSA, you're playing checkers while the Smart Money plays chess.
  • #156
  • Jun 16, 2014 11:07pm Jun 16, 2014 11:07pm
Quoting Ponzi Jr
The occurrence of a Doji candlestick is often regarded as a sign of a potential reversal. However, other times it is actually just a brief period during which bulls/bears are catching their breath - after which the initial trend resumes. What other signs are there that a doji signifies that a reversal is about to occur?
for my own system, you have to recognize either is it a trend is still on the air or is it just a sideways.
if it is a trend say bullish, look at the volume of the trend.
if it is like decreasing tf by tf and in the present tf doji candle appeared it is increasing more than mean by previous tf volume, looks like buyers still on the move, and it has small prob to go down (unless there's a really bad news about currency)
if the volume of the present doji is not increasing than previous mean of volumes traded, i can assume that buyers are no longer interested to defend the currency, hence it will go down.

if it is a sideways, dont ever trust doji
  • #157
  • Jun 16, 2014 11:15pm Jun 16, 2014 11:15pm
guys, the topic starter is just asking "What other signs are there that a doji signifies that a reversal is about to occur?". its completely just that question but all of you are explaning off side the topic. it is like your lecturer is giving you a test with 1 number and simple question as above and expecting 6-7 lines of answer but most of you are jerking off with some of your stuffs and answering the question that even not asked. if the topic starter were a teacher and has an autorithy to grant you an F and send you home (kick off ya out of his thread) for your answer, that would be amazing
  • #158
  • Edited Jun 17, 2014 12:17am Jun 16, 2014 11:35pm | Edited Jun 17, 2014 12:17am
Same chart, same lines as earlier. Just up close and hours later.

Here it is .... A Doji from the past (follow the line) still bringing home the intraday bacon yet again. At +43 now. Looking for TP at the trendline or before London open. So far so good. I'm just a line to line guy, session to session.

How to correctly use Doji's to spot reversals? Most of the time if not all of the time they are just a signal that we may get a good reaction off of a S&D or S&R zone. I use them as just another area of interest to revisit later.

So was it really still indecision weeks later or just a price cap, maybe S&D, S&R, news or all mentioned rolled up in one? Not a clue but it works 9x outta 10 for me.
Everything works IMO. Doji plays, S&D, S&R, TrendLines, whatever you like playing with. Find something ya like, spend thousands of hours on it to perfect it, master it, believe in it and most importantly, ya can't be a bitch. You gotta take the trades religiously when they appear.

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SPC * Swollen PocketZ Crew!
  • #159
  • Jun 17, 2014 12:43am Jun 17, 2014 12:43am
EUR/NZD H1. Return of the Doji.
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Time turns trend. - W.D. Gann
  • #160
  • Jun 17, 2014 1:15am Jun 17, 2014 1:15am
30 minutes later, the Star Wars theme is running through my head. Drunk here.
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Time turns trend. - W.D. Gann
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