Doji signals

The Doji signals indicator identifies and highlights Doji candlesticks on the chart, helping traders pinpoint moments of market indecision and potential trend reversals.

Usage

The script is designed to detect Doji candles based on a user-defined body-to-range ratio. When a Doji is identified, the indicator highlights the bar in a distinct yellow color and triggers a plot signal. This tool is versatile and can be used on both standard candlestick charts and Heikin-Ashi candles. Traders typically use these signals to identify potential exhaustion in a trend or as a precursor to a reversal when combined with other technical analysis tools.

Details

A Doji occurs when the opening and closing prices of a security are nearly equal. This script calculates the presence of a Doji by comparing the absolute difference between the open and close (the body) against the total price range (high - low) multiplied by a precision factor. If the body is smaller than or equal to this calculated threshold, a signal is generated.

Settings

• Doji's Max Body size: Adjusts the sensitivity of the detection. A lower value requires the candle body to be smaller relative to its range to be considered a Doji, while a higher value allows for larger bodies to be flagged.

FAQ

How do I use the alerts for this script?

You can create an alert by selecting the indicator in the TradingView alert menu. The script is optimized to trigger an alert once per bar close whenever a Doji is detected.

Does this work on all timeframes?

Yes, the Doji signals tool can be applied to any timeframe and works effectively on both standard and Heikin-Ashi candle types.

How do I access the Doji signals indicator?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.