Double Doji Candlestick Trading Strategy -- with David Moadel
hello friends and welcome to looking at the markets with David Modell I have not
just a doji candlestick trading strategy I have a double doji candlestick trading
strategy for you today and it doesn't happen that often because it's not all
the time that you find two doji candlesticks in a row but when you do it
can be pretty powerful now make sure that you test it out first with virtual
trading demo trading paper trading call it what you will test it out first make
sure it works for you before you commit any real capital to it and even then
only commit very small amounts of money to it if you're going to use this it
does not work 100% of the time no strategy that I've seen works 100% of
the time in trading so please be careful and by the way if you want more help
with trading or investing you can contact me at David Modell at gmail.com
so here is the Netflix three-minute candlestick chart I believe this could
be possibly usable on other timeframes as well for intraday traders the 1 2 3
or 5-minute candlestick charts are pretty good and then for swing traders
the daily candlestick chart is often used and you can try it with that as
well and I'm using it with stocks now but people ask me a lot about Forex or
crypto currencies sure try it as long as you demo trade it first and make sure it
works all right so can you find the two doji's
by the way can you see them yeah they're down here
so if one doji and a doji just real quickly and I have other videos I have a
whole playlist of technical indicator videos if you don't know what a doji
candlestick is check that I'll put a link in the description below this video
for that playlist but yeah if one doji candlestick just really quickly to
summarize it is a candlestick where you have
basically no body or very little body a flat body okay and but you also have an
upper or lower wick unless it's a grave stone or dragonfly doji but we're mainly
looking for the normal dojis where it has both an upper and lower wick or
shadow and then a very very flat body and that indicates indecision in the
markets it opens and closes that are you know it opens and moves around in both
directions and then closes around the same spot it doesn't know where to go
when you get one doji a candlestick that's indecision when you get two in a
row two consecutive doji's the double doji that is real indecision that's the
market ready possibly to make a turnaround
as you can see Netflix was down down down the air was being led out of the
tire so to speak but then it went up encouraging but yet one doji is it ready
for a turnaround not sure yet two in a row that seems more powerful potentially
to me so what do you do well what you can do is wait for the third candle the
next one after the double doji the two doji's in a row and see which way is it
breaking you can mark off the high point of the two doji's the double doji
including the wicks or shadows so if the high is here the you know the top most
shadow or wick of the two and then mark off the bottom one you know the
lowermost shadow or wick of the two doji's and so you got the high of the
two doji's and the low of the two doji's all right including the wicks or shadows
all right so look for that third candle did it close above the high of the two
doji's including the wicks or below the low of the two doji's including the
wicks well clearly it closed the the next candlestick closed way above the
high of the two doji's so I would consider that bullish and bam look at
that liftoff right all right whereas if it had if it had closed
decisively below the low of the two doji's then that to me would be
that are bearish which could be potentially a short position or if you
had already bought you could sell at that point either way be careful with
shorting because you can lose more than you actually have in your account with
shorting so please be super careful with that
all right so and I tend to prefer long positions anyway in stocks that I like
such as Netflix I don't like Netflix all the time but a lot of the time I do like
it so there it is blast off alright so watch for the clothes and especially a
decisive clothes not kind of wishy-washy not kind of just barely above it is it
above it is it not look for something decisive like this and if it's
immediately after the two doji's in a row that's like a you know liftoff not
every time but in this case for sure alright so I hope this is a helpful
thing you know you can look for it it doesn't happen that often
you can see in this entire chart here all day long on the 3-minute candlestick
chart you only found it one time and you can go for quite a long time without
finding it but if you do see it I want you to be able to recognize it alright
so if you want more help again you can email me at David Modell
at gmail.com I do offer coaching for traders and investors to help you put
together a plan for yourself hopefully alright and if you like this video hey
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do you like the double doji strategy what do you think let me know also if
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out new videos like this one thanks a lot I appreciate it I'll talk to you
again soon