The Doji candlestick plays an important role in the forex trading market because it is able to show market conditions when it is not easy to make decisions. It also describes changes in specific directions in the market.
There are two types of Doji candlestick: single Doji and double Doji. Mostly, traders like to apply double Doji as it is most effective. So, do you want to know about the Double Doji candlestick?
Normally, a double Doji candle is used to increase the chances of getting rewards in trading by observing the market. There are three main pairs to define the double Doji pattern. These are two gravestone pairs, Doji and long-legged Doji pair, and two dragonfly Doji pairs.
In a double Doji pattern, you can form two candlesticks respectively. It represents market conditions and intervals that occur in price trends. Each Doji candlestick has a different definition and function.
All the main features depend upon the environment of the market from where you start trading. It is a very simple trading strategy that controls the price movements in the market.
Let’s explore more about it!
What Is Double Doji Candlestick
There are two types of Doji Candlestick: single and double. Mostly a single Doji is used to remove doubts and is a good sign for hesitations. The use of one Doji after another is called double Doji. Now, see what a double Doji candle is?
Generally, it is a pattern where one after another candlesticks are constructed successively. It represents market arrangements and also shows interruptions of prices.
It shows big demonstrations that cause powerful breakouts. Through the double Doji strategy, you can benefit from directional moves. These moves can easily be extended after a time of doubt.
Double Doji is a very rare form of Doji candlestick and has the ability to find changes in comparison to a single Doji. This type of pattern also presents the big changes in market price.
What Is Double Doji Candle Pattern( Three Main Pairs)
The double Doji candle pattern is used when traders find a lot of doubts in the market and become confused. These patterns are helpful for them to handle the situation and fight against these hesitations.
You can make three pairs of double Doji candlesticks to get a perfect pattern. Two different Doji combines these pairs. Let’s read them precisely!
1. Doji and Long Legged Doji Pair
Doji and long-legged Doji is a pair that represents the movement of price on the sideway by continuous combination. It is also a sign of embellishment of patterns at a wider scale. In this pattern, it is clear that the market can select the right direction.
By this pattern, it is possible for the price that it will select any one of the trend directions: Bullish direction or Bearish direction.
2. Two Gravestone Doji Pair
Whenever you use a single gravestone Doji, it represents a bearish tendency. You can observe it on the chart where price rejection is mentioned above the key level. Similarly, the two-time rejection of prices makes the condition of Dragonfly Doji solid and powerful.
In this pattern, the chances of bearish retraction movement may increase. Experts recommend that it is ideal to have complete knowledge about Single Gravestone Doji for best results to understand double gravestone Doji.
3. Two dragonfly Doji Pair
In this type of pattern, alteration of Bullish tendency very clearly. In this pattern, the wish of the buyer’s purchase at the level of rejection is described clearly. It means they are now in a powerful position in comparison to sellers.
In this way, they are trying to put the market up to the level of the candlestick. On the other hand, if you have to face rejection two times, there is the possibility of an increase in inversion tendency. So, this pair shows an increase in Bullish tendency than single Doji.
How To Use Double Doji Pattern In Trades(Two Basic Methods)
Several Doji patterns are used in trades, like trading indicators. The double Doji pattern is one of these methods. The is that you must know the proper way of using them in trades. The complete process of applying Double Doji is given below:
1. Place A Buy Order
If you are using double dragonfly Doji in trades, You have to place a buy order in this case. It is good for a trader because it supports the demand zone level and helps to manage price trends in the market.
2. Open A Sell Order
In the case when you are planning to apply a double gravestone Doji pattern for trading, you can open a sell order. It is done when this pattern creates confrontation and a supply section. Above the supply zone, stop loss leaves a few pips in this market condition.
What does a double Doji candlestick mean?
The main function of the double Doji candle is to take advantage of powerful directional moves. Such moves may be extended after the period of fluctuation.
How many types of Doji are in forex trading?
There are many types of Doji, but three major types are working most successfully. These are gravestone, dragonfly, and long-legged. These types make combinations in double Doji candlesticks.
Is Dragonfly Doji bullish?
Yes, Dragonfly Doji is a bullish type pattern of Doji candlestick. It is used to display the backtracking of a price downtrend and uptrend in the beginning.
Hopefully, after reading this post, all of your confusion may vanish from your mind. Now it is clear from the above discussion that Doji candlestick patterns are a big source of explaining price actions and movements.
Basically, there are two types of Doji candlesticks from which the double Doji candle is mostly used to represent the characteristics and behavior of the trading market. It is important to understand these patterns to trade successfully.
Your trading plans should also be according to these Doji patterns to avail beneficial trading strategies. Now, you are ready to trade with full confidence and without any fear.