GBPNZD DAY BEST LUCKY STAR DOJI STRATEGY

Trading Doji candlestick as a stand-alone trigger signal is a bad idea. Price usually whipsaws around doji.
Note #1: In technical analysis, the Doji candle is a neutral pattern if it’s used as a stand-alone candlestick.
However, if the Doji candle it’s used in conjunction with the preceding price, we can establish a bullish or bearish bias.
A whipsaw pattern involves price moving chaotically above and below a certain key support and resistance level. Whipsaw patterns are also referred to as false breakouts. We have developed our Japanese Doji trading strategy around this price feature.
Step #1: For short trades we need a steady move downward, below the 14 –day MA
Even though most traders used this Japanese candlestick pattern as a reversal pattern, we have found out through some testing that the Doji candle performs best as a continuation pattern. So the first step we need to undertake is to determine the trend direction.
When we see the price moving steady downwards below the 14-day MA we have enough reasons to believe a downtrend is in progress.
Step #2: Look for a Doji Candlestick to develop near the 14-day MA and inside the previous candle price range.
Next, there are two more conditions that need to be satisfied for a valid trade setup. The first thing to consider is the location of the candlestick setup. We need the Doji candle to develop near the 14-period MA.
Secondly, we need the Doji candle to be contained inside the price range of the previous pattern. Basically, this will lead to the formation of another pattern called an inside bar.
So, we have a pattern within a pattern.
Step #3: Whipsaw pattern: Look for a false breakout above the previous two-bar pattern. Go short once we recover and break below the Doji candle opening price
Now, we’re going to bring to light how we use the whipsaw pattern to our advantage.
The Doji candles are very well-known candlestick patterns for producing a lot of false breakouts. We also know that a break of a level against the prevailing trend has fewer chances to success.
So, by putting all these pieces of the puzzle together we were able to develop one of the best Doji strategies, which eliminate the scenario where your stop loss is prematurely triggered.
After the false breakout, we wait for the price to recover and we only sell once we get price breakouts the bearish Doji candle opening price.
Note #2: We want everything to happen within the first candle after the Doji bar. So the false breakout and our entry should be immediately on the next bar following the Doji candlestick.
Let’s now determine an appropriate place to hide our protective stop loss and a proper way to exit our trade.
Step #4: Place protective SL above the current daily candle high. Take profit once we break below the inside bar pattern or a support level.
We aren’t going to stay in this trade for a very long period of time. That’s the reason why we exit our profitable trade once we break below the inside bar pattern or nearest sup/res. When it comes to placing our protective stop loss, we can hide it above the high of the candle that triggered our entry.
Long trade is just opposite setups.