A doji is a candle with a very short body on a 1(h) chart for short-term trading.
1. What to do if the doji has just appeared?
• You should not buy immediately after a doji because:
• Doji signals market uncertainty.
• There is no clear confirmation of the trend (it could be either a continuation of the previous one or a reversal).
• You need to wait for 1-2 next candles to understand the trend direction:
• If the doji is followed by a bullish candle with MACD confirmation and increasing volume, this is a buy signal.
• If a bearish candle follows the doji, it is better to refrain from trading.
2. What if the doji was a few candles ago and the trend is confirmed?
• If there are already several green candles after the doji:
• MACD shows a bullish crossover (signal line above the main line).
• Trading volumes are increasing.
• In this case, buying may be profitable even at the current price (instead of waiting for a return to the support level), because the trend has already started.
Key idea: if the trend is confirmed and the market shows strength (increasing volumes and indicators), then it is better to enter into a deal at the current price so as not to lose the momentum.
3. Why not wait for a support level in such situations?
• If the trend has already gone up, the price may not return to the support level again.
• Waiting can lead to a loss of opportunity to enter a profitable position.
• The trend after a doji is often sharp and fast, so delaying buying can cost potential profits.
General algorithm
1. Doji appears → wait 1-2 candles.
2. Check:
• MACD: bullish crossover for a buy signal.
• Volumes: should increase.
• Candlesticks: green, with strong bodies, indicating buyers.
3. If the conditions are met:
• Buy at the current price.
• Set a target price for the exit, depending on the trend and the nearest resistance level.
This approach allows you to make the most of the moments after the doji without taking unnecessary risks.
Should I share my findings on key indicators such as trend, RSI, MACD, volume levels, etc. that I have studied before?