rojoch - yes doji candlesticks are not completed patterns,
however yes under some circumstances you can use them as triggers
for reversion to mean setups. For those patterns price needs to be
very extended for shorts and longs, and you also want to see some
divergence on a small time frame. On a daily chart you want to see
typically some divergence on a 60 min time frame. The doji on the
daily needs to have large separation from the 9 EMA.
Yesterday SPX closed with a doji as did most indexes and
sectors. The doji was very far above it's 5 and 9 EMA's and also
there was negative divergence on the 60 min frame via the MACD.
The problem today was that the cash market gapped down, thus
triggers below dojis on SPY or ETF's like SDS or SOXS gapped.
ES trades overnight, yesterday's doji low on ES was 2724.25,
so one could have placed a sell stop order 1 tick below the doji at
2724. I did this myself but wasn't filled because of a dumb
error on my point not clicking the fill in after hrs option in
Interactive Brokers. But otherwise a doji is not a true
pattern, it's a potential pattern.
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Thx. You mostly using the
As far as mapping the SPX , there remain a ...
Posted by rojoch on 15th of May 2018 at 03:50 pm
Thx. You mostly using the 5m chart since you're intra-day?
rojoch - yes doji candlesticks
Posted by matt on 15th of May 2018 at 04:33 pm
rojoch - yes doji candlesticks are not completed patterns, however yes under some circumstances you can use them as triggers for reversion to mean setups. For those patterns price needs to be very extended for shorts and longs, and you also want to see some divergence on a small time frame. On a daily chart you want to see typically some divergence on a 60 min time frame. The doji on the daily needs to have large separation from the 9 EMA. Yesterday SPX closed with a doji as did most indexes and sectors. The doji was very far above it's 5 and 9 EMA's and also there was negative divergence on the 60 min frame via the MACD. The problem today was that the cash market gapped down, thus triggers below dojis on SPY or ETF's like SDS or SOXS gapped. ES trades overnight, yesterday's doji low on ES was 2724.25, so one could have placed a sell stop order 1 tick below the doji at 2724. I did this myself but wasn't filled because of a dumb error on my point not clicking the fill in after hrs option in Interactive Brokers. But otherwise a doji is not a true pattern, it's a potential pattern.