Trading Cuentas

When a doji candlestick is spotted in the market, first look back to see if there was enough movement for you to profit from a reversal. A retracing may only be about one third of the distance since the last low. If that gives you enough space to cover your spread and allow for a little slippage, you can go on to step two. An oversold or overbought market plus the doji is a good indication that you can get entangled. You may also look at the trading volume. If trading is trailing off, then this is another sign a reversal might be about to occur.

When you open a trade, be prepared at first for a reversal. 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 this point, you may want to close just half of the trade. With the other half, you could move the stop to a no-lose position close to your opening price, and let it run in case a major reversal happens. You do need to know what you are doing and this kind of trading needs a large amount of practice, even though it’s a straightforward system.

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