the Doji Arrows Indicator MT4 MetaTrader for scalp in Forex Free Download

Introduction to the Doji Arrows Indicator

Candlestick patterns often represent specific behaviors of the market that traders may pay attention to. For instance, some candlestick patterns might indicate a point of indecision or confusion in the market. These are candlesticks with very small bodies known as Doji candles. The reason they are called Doji is that the price has recently closed near the opening price. These indecisive points may also signify a potential reversal. The Doji Arrows Indicator was developed to help traders identify Doji candles in places where the market may reverse.

What is the Doji Arrows Indicator?

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The Doji Arrows Indicator is a trend reversal signal indicator based on candlestick patterns, specifically the Doji pattern. This indicator automatically detects Doji patterns and shows arrows indicating the likely direction of the market after the indecision point. Whenever a Doji candle is detected with a probable upward trend reversal, a blue arrow is drawn pointing upwards below the candle. On the other hand, whenever a Doji candle is detected with a probable downward trend reversal, a red arrow is drawn pointing downward above the candle.

How does the Doji Arrows Indicator work?

Click here to download and install the Doji Arrows Indicator .

The Doji Arrows Indicator has an algorithm that automatically detects Doji candles based on the distance between the closing price of a candle and the closing price of the previous candle. It then compares the difference between the two price points with a predefined threshold to determine if the candle qualifies as a Doji pattern. In this case, the indicator is preset to recognize candles with a distance of less than 1 pip as Doji candles. It then determines the likely direction of the reversal based on the distance between the close price and the high and low prices of the candle.

How to Use the Doji Arrows Indicator on MT4

Click here to download and install the Doji Arrows Indicator .

The Doji Arrows Indicator has several variables that can be changed in its settings.

• ThresholdB and ThresholdS allow users to change the distance between the closing prices of candles used to qualify as Doji candles. This value is entered as an actual price value, meaning that values like 0.0001 and -0.0001 correspond to a 1 pip distance.
• CountBars refers to the number of past candlesticks in which the indicator identifies Doji candles.

Buy Signal Using the Doji Arrows Indicator

• When to enter a buy trade? If the Doji Arrows Indicator shows a blue arrow pointing upwards in conjunction with the trend direction and a confirmed Doji candle, enter a buy trade. Place the stop-loss below the previous candle.

• When to exit the buy trade? Close the trade once price movements show signs of a potential downward reversal.

Sell Signal Using the Doji Arrows Indicator

• When to enter a sell trade? If the Doji Arrows Indicator shows a red arrow pointing downwards in conjunction with the trend direction and a confirmed Doji candle, enter a sell trade. Place the stop-loss above the previous candle.

• When to exit the sell trade? Close the trade once price movements show signs of a potential trend change to an upward direction.

The Doji pattern is an effective signal for a potential trend reversal. However, this indicator may sometimes identify candles that appear as Doji candles but don’t technically qualify. Traders should verify if the candle truly resembles the Doji pattern before acting on the signal.