Doji Arrows Indicator is a breakout indicator, used to spot the neutral positions of the market. It also points the current trend direction of the market with its arrow signals so that traders can determine the mode of the entry within the market trends. This indicator is very easy to understand and simple to apply for the trading thus offers great advantages for the newbie trades.
Doji Arrows Indicator is a short-term scalping indicator. It works better when used for timeframes like M1, M5, and M15 charts. Besides, it is ideal to apply it to trade only the major forex currency pairs in the financial markets
Doji Arrows Indicator Overview
Once you’re done with the installation of the indicator it will appear on your trading chart like the following image:
Doji Arrows Indicator Explanation
Doji Arrows Indicator continuously follows the market looking for candles with neutral symptoms. It means the indicator defines the positions of the market when the buyers and sellers are in a 50/50 position.
Besides, it also determines the market trend in the background and plots an arrow showing the direction of the market trend and the Doji candle at the same time. Market entry is made only when the high/low of the Doji candle is broken within the direction of the market trend.
For the trade exit, you may either wait for a red Doji Arrow or close the trade directly whenever it hits your expected take profit level or the risk to reward ratio. Moreover, you may add other trend-following indicators or strategies along with the indicator for smoother performances.
Doji Arrows: Buy Condition
- A blue Doji Arrow appears below the price candle
- The high of the respective candle is broken by the following price bar
- Buy triggers when the above conditions are met
- Set stop loss below the current swing low of the market
- Exit short/take profit whenever the indicator plots a bearish Doji
Also Read: Exness Broker Review
Doji Arrows: Sell Condition
- A red Doji Arrow appears above the price candle
- The low of the respective candle is broken by the following price bar
- Sell triggers when the above conditions are met
- Set stop loss above the current swing high of the market
- Exit short/take profit whenever the indicator plots a bearish Doji
