Vladimir Ribakov – The Secret of the Double Doji Forex Trading Strategy

Vladimir Ribakov – The Secret of the Double Doji Forex Trading Strategy

Description

It is a quite simple technique, but one of the most dependable setup I’ve ever seen (and oh boy have I seen loads of methods in my Forex profession…).

My identify is Vladimir and I’ve been following this technique and implementing it efficiently for the previous 4 years. I consider it’s about time I’ll share its simplicity and energy with the Forex merchants’ group. I’m positive loads of individuals on the market are desirous to arrive to the place I’m in now.

So, the place did this technique come from?

I’m positive you’ve heard of Japanese Candlestick charts. The Candlestick principle is wonderful, however sadly few merchants give it high precedence because it deserves.

The form of the candle can inform us all. Each candle tells its half of the full story. We simply must discover ways to put collectively this puzzle.

The „Doji” sample is one of the most unimaginable patterns amongst the Japanese candlesticks. For some cause it isn’t referred to fairly often. Possibly that explains why it’s extensively utilized by execs…

The Doji hints us that the market is in a state of steadiness of powers: the patrons’ power has run our, however so is the sellers’. So this can be a state of short-term calmness, simply earlier than a serious transfer.

That is the place I are available in.

4 years in the past I noticed the potential of candlestick evaluation, and had a „New Yr’s decision” to grasp it. After I say grasp it I imply actually comprehensively research it. Be an actual „candlesticks archaeologist”, no stone left un-turned.

As the finding out progressed, I noticed I’ve a one thing very invaluable in my palms. Its worth could be measured with gold, and much of ounces of it!

Why is it so invaluable? Nicely, it’s a easy technique, and I take advantage of it to make my residing and take care of my household.

However… there’s another excuse: 4 of my finest buddies are utilizing it the identical method as I do. There’s nothing extra satisfying than realizing you’ve fulfilled your goals and helped your folks fulfill theirs. So this goes rather well with the „Methods for $9.99” challenge.

Let’s get all the way down to enterprise and discover ways to use the „Double Doji” technique.

First, let’s see what a Doji is:

The Doji might seem in a spread of shapes, however the which means of all of them is the identical.

Listed here are the commonest examples of Doji candlesticks:

The which means is that the opening and shutting worth of the candle are the identical. Do not forget that every candle represents a specific amount of time. For instance when you’re taking a look at a „1 hour” (H1) chart, every candle represents one hour of market exercise.

Thus, the hour began with a sure worth. The patrons fought the sellers, they every pounded one another, and in the finish the worth stayed the identical.

In actual fact, think about an arm wrestling battle when two world champions meet. The battle commences, every pulls to his personal facet… they make investments loads of pressure, sweat, their muscle mass tremble… however no winner but… till the second when one of them decides to finish it.

That is much like what occurs in the market and portrayed by the Doji sample. The Doji represents an arm wrestling battle between patrons and sellers, till one of the sides places down sufficient pressure to win.

Now think about what occurs while you see not one, however two Dojis!

It is a world battle between patrons and sellers. After such a battle, you might be most probably to have a knock-out winner. In different phrases, after 2 Dojis in a row there’s a excessive likelihood of a powerful transfer. A transfer which I’d actually want to take an element in.

That’s the reason the first situation for this technique is to determine 2 Dojis one after the different. It’s preferable that the two Dojis will seem after a transparent robust pattern, for instance an up pattern or a down pattern.

Notice: a candle with a physique of just some pips, 2-4 pips, is taken into account a Doji.

Let’s have a look at some examples…

Instance 1: two Dojis in a row (the two rightmost candles):

Instance 2: two Dojis after an up transfer:

After you’ve noticed the two Dojis comes the second situation:

It is best to mark the borders of the two Dojis. As you possibly can see in the display shot under, I’ve marked the higher and decrease borders of these two Dojis:

…and right here’s one other instance of marking, plus what occurs subsequent…

…as soon as the border is crossed, a transfer is underway so I want to get in the motion.

The third situation of this technique:

Place two pending orders. One in case the market breaks the higher border of the Dojis (1 pip above it’s sufficient) and one in case the market breaks the decrease border (1 pip under).

Obtain instantly Vladimir Ribakov – The Secret of the Double Doji Forex Trading Strategy

Now it’s essential to prepare for the Cease Loss of the commerce:

For a Purchase (Lengthy) commerce, place the Cease Loss 1 pip under the Doji’s decrease border.

For a Promote (Quick) commerce, place the Cease Loss 1 pip above the Doji’s higher border.

Now for the extra cheerful half of figuring out the revenue goal, or the quantity of revenue you count on to extract from this commerce:

I’d prefer to current to you 3 totally different strategies of managing this commerce. All three have been totally examined and confirmed to offer spectacular and constant outcomes.

So, why three strategies? As a result of each of us has their very own private strengths and weaknesses. Some discover it troublesome to carry on to a commerce for a protracted interval of time. Others like to take income rapidly even when its not that a lot. But others have loads of persistence and may maintain on to a commerce with out fears.

Commerce administration technique 1:

Take Revenue is the same as the Cease Loss.

For instance: my Take Revenue is 50 pips and my Cease Loss can also be 50 pips.

The share of successful trades is round 70% so if we preserve buying and selling persistently the beneficial properties can accumulate.

Commerce administration technique 2:

This one is my private favourite. You open 2 equivalent trades.

The first has a Cease Loss equal to the Take Revenue. The second has a revenue goal which is double the Cease Loss. For instance: Cease Loss is 50 pips and Take Revenue is 100 pips.

It’s a good suggestion to maneuver the Cease Loss to the opening worth of the commerce („Break Even”) as soon as the first commerce exited in revenue.

Right here’s one other commerce instance:

As you would possibly seen, my first revenue goal was equivalent to the Cease Loss, whereas the second revenue goal ought to double the Cease Loss.

Additionally observe that the double Doji sample appeared after an up transfer which consisted of 3 inexperienced candles in a row. The reliability of such a commerce could be very excessive!

Commerce administration technique 3:

Open one commerce with a revenue goal which is half the Cease Loss. Let’s say I decided the Cease Loss to be 50 pips, thus the first goal could be 25 pips. That is the place I’ll shut 80% of the commerce.

For instance, if I opened 1.0 lot, I’ll shut 0.8 tons as soon as the 25 pips goal is reached: 1 x 0.8 = 0.8.

The second revenue goal, for the remaining 0.2 tons, could be two instances the Cease Loss. Thus, persevering with the earlier instance, my Take Revenue could be 100 pips.

Earlier than I depart you to take pleasure in this technique a couple of fast ideas:

• Work finest on the 1-hour, 4-hours and day by day charts.
• The finest forex pairs are the ones that contain the USD, and in addition all the Yen crosses (EUR/JPY, GBP/JPY, AUD/JPY and so forth.).

On your comfort right here’s a abstract of the guidelines:

• Spot 2 Dojis in a row. It’s higher once they seem after a transparent up or down pattern (minimal of 3 inexperienced or crimson candles in a row).
• Mark the higher and decrease border of these Dojis’ highs and lows.
• Await one of the borders to interrupt. No want to truly wait, simply insert 2 pending orders.
• When one of the orders executed, I’ll cancel the different one. Select one of the three commerce administration strategies and comply with it to the letter.
• Gather income.

I’m proud to have the alternative to current to you such a profitable technique, and that will help you attain your monetary objectives.

Good luck with this week’s buying and selling,

To your success,

Vladimir Ribakov

Forex Trading – Overseas Change Course

Need to find out about Forex?

Overseas trade, or foreign exchange, is the conversion of one nation’s forex into one other.
In a free financial system, a rustic’s forex is valued in line with the legal guidelines of provide and demand.
In different phrases, a forex’s worth could be pegged to a different nation’s forex, reminiscent of the U.S. greenback, and even to a basket of currencies.
A rustic’s forex worth may be set by the nation’s authorities.
Nonetheless, most nations float their currencies freely in opposition to these of different nations, which retains them in fixed fluctuation.