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Doji Arrows Indicator for MT4

Candlestick patterns often indicate market behavior that traders can pay attention to. For example, certain candlestick patterns can indicate points of doubt. These are candles with very small bodies called doji candles.

This is because the price has just closed at a point close to its open. This indecision could also mean a possible reversal. The Doji Arrow indicator is designed to help traders identify potential doji candles where the market may reverse direction.

What is the Doji Arrow indicator?

The Doji Arrows Indicator is a reversal signal indicator based on candlestick patterns, specifically the Doji pattern.

This indicator automatically identifies doji patterns and draws arrows indicating the possible direction of the market direction after a point of doubt. It draws a blue arrow pointing up below the candlestick whenever it sees a doji candlestick with a possible upside reversal. On the other hand, it also draws a red down arrow above the candlestick when it sees a doji candlestick with a possible bearish reversal.

How does the doji arrow indicator work?

The Doji Arrow indicator has an algorithm that automatically detects possible doji candles based on the distance between the close of one candle and the close of the previous candle. It then compares the difference between the two price points with a predefined threshold to qualify the candle as a doji pattern. In this case, the indicator is set to recognize a candle with a distance between the two points below 1 pip as a doji candle. It then identifies the direction of a possible reversal based on the distance between the close and the high and low of the candle.

How to Use the Doji Arrow Indicator for MT4

The Doji Arrow indicator has several variables that can be changed in the indicator settings.

How the Doji Arrow Indicator works

“ThresholdB” and “ThresholdS” allow the user to change the distance between closing candles that will be used to qualify a doji candle. This value is the actual price value, which means that the values ​​of 0.0001 and -0.0001 are placed 1 pip apart.
“CountBars” refers to the number of historical price bars at which the indicator will see a possible doji candle.