In an up or downtrend, the doji is either an indication that the trend is about to end if traded as a reversal or an indication that the trend is only taking a pause.
Candlesticks, where the body is one-fourth of the high-low range of the candle, is a doji in our opinion, some use other names (spinning tops etc.) depending on where in the range the doji’s open and closing price occurs, but we recommend you keep it simple as we do.
In this one minute candlestick trading strategy, in bear trend, we trade sell short signals, and cover lower. In bull trend, we trade buy long signals, and sell higher. We go long when the high of a doji breaks in a bull trend and we go short when the low of a doji breaks in a bear trend.
The key to make big profits with this strategy is letting your profits run using a trailing stop loss. You will not win as many trades as when applying this technique, but when you do, the risk reward ratio on those winners are next level.
Let's look at the one minute strategy in live action...