TUTORIAL
Monday's candle formed a Doji. A Doji is a candle pattern where the Open and Close are very close together and the candle has both upper and lower shadows. A Doji is a neutral candle and is neither bullish or bearish.
TRADING
When a Doji is in between Support and Resistance I do not make any trade decisions as a Doji is just an indication the market is taking a break before continuing its trend. However, when price is near a support or resistance level the Doji informs me that a reversal is near. When the Doji is near or at resistance I look for the following candle to close below the low of the Doji; this then forms a Short trade setup. When the Doji is near or at support I look for the following candle to close above the high of the Doji; this then forms a Long trade setup.
Monday's candle formed a Doji. A Doji is a candle pattern where the Open and Close are very close together and the candle has both upper and lower shadows. A Doji is a neutral candle and is neither bullish or bearish.
TRADING
When a Doji is in between Support and Resistance I do not make any trade decisions as a Doji is just an indication the market is taking a break before continuing its trend. However, when price is near a support or resistance level the Doji informs me that a reversal is near. When the Doji is near or at resistance I look for the following candle to close below the low of the Doji; this then forms a Short trade setup. When the Doji is near or at support I look for the following candle to close above the high of the Doji; this then forms a Long trade setup.