When a doji candlestick is spotted in the market, first look back to see if there’s been enough movement for you to profit from a reversal. If that gives you sufficient room to cover your spread and make allowances for a little slippage, you can go on to step 2. Step 2 involves checking an oscillator to be certain that the current price is shown as overbought or oversold. An overbought or oversold market and the doji is an indication that you can become involved. You can also glance at the trading volume. Either set a limit order at the point that you would expect a short term retracement to reach, or watch and do this by hand. At that point, you might want to close just half the trade. With the other half, you might move the stop to a no-lose position close to your opening price, and let it run in case a major reversal happens.

Of course, there is always a risk, as with any kind of hopeful trading. Therefore we endorse trying out these doji candlestick trading systems in a demo account so that you know how to operate them successfully before going live.