Doji Candle Indicator MT4 | MT5

The Doji candle Indicator, classified as a pattern indicator, is a key reversal signal commonly used in technical analysis on MetaTrader 4. It detects the doji when the opening and closing prices of a trading period are virtually the same, showing a cross or plus-shaped candlestick with small or no body and extended wicks on either side.

The same principle applies to its version of MetaTrader 5, the doji indicates indecision in the market, as neither the buyers nor sellers are in control. This indicator can signal a reversal or continuation by detecting the Doji. At the end of an uptrend suggests a reversal to a downtrend, and vice versa at the end of a downtrend.

On the trading example on metatrader 4 chart, an uptrend begins with a signal from the doji candle indicator that shows a doji on the chart signaling a long opportunity. Later, as the EURJPY chart reaches the end of the trend, another doji appears, indicating a potential reversal into a downtrend and providing a sell signal for traders. This signal provides the trader with an exit point for his position and give him a profit around 100 pips.

Similarly, on the trading example on metatrader 5 chart, a downtrend starts with a signal from the doji candle indicator showing a doji candle on the chart pointing to a short opportunity. Toward the trend’s conclusion, a second doji emerges on the CADJPY chart, signaling a reversal into an uptrend and offering a buy signal for traders. With this signal, the trader can close his position and take a profit around 85 pips.