Doji Arrows
This is a candlestick pattern recognition indicator/EA that identifies Doji candlestick patterns and displays arrow signals on the chart. It does not open trades automatically but provides visual signals for traders to act upon. The tool focuses on detecting various Doji formations which indicate market indecision and potential reversal points.
Open the interactive view (equity curve, symbol switch)Key facts
Backtest results (H1, about 1 year)
Not backtested yet — this EA could not be converted automatically.
Strategy analysis
The core strategy of this EA is based on Doji candlestick pattern recognition, where a Doji represents equilibrium between bullish and bearish forces and is traditionally viewed as a potential trend reversal signal. Entry conditions are triggered when various Doji formations such as standard Doji, Long-legged Doji, Dragonfly Doji, or Gravestone Doji are detected, with arrow markers displayed above or below the corresponding candles. Exit conditions are entirely at the trader's discretion since this tool only provides visual signals without executing any trades. Position sizing and money management are not applicable as this is a pure signal identification utility. The strategy's effectiveness depends on the trader's understanding of Doji signals and their ability to combine them with other technical analysis tools. Using Doji signals in isolation carries significant false signal risk, and it is recommended to combine them with trend, support/resistance, and other analyses.
Strengths
- Doji is a classic reversal candlestick pattern with wide market recognition and practical value
- Provides visual arrow markers for traders to quickly identify key candlestick pattern locations
- Flexible as an auxiliary tool that can be freely combined with other technical analysis strategies
Weaknesses
- Doji signals alone produce many false signals, with misjudgments possible in both ranging and trending markets
- Lacks a trend filter mechanism, unable to distinguish continuation Doji from reversal Doji within a trend
- Does not provide automated trading functionality, traders still need to judge entry and exit timing independently
Possible improvements
- Add trend filter indicators (e.g., MA direction) to only signal Doji patterns against the prevailing trend, improving signal quality
- Add volume confirmation or support/resistance level filtering to reduce false signals
- Add multi-timeframe confirmation, only alerting when higher timeframe also shows reversal signals
Risk assessment
Overall risk: Safe
- As a signal tool it does not trade directly, posing no capital risk
- Relies on trader's interpretation of signals; misreading may lead to inappropriate trading decisions
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
DojiThreshold | 0.1 | Doji body-to-wick ratio threshold for pattern detection |
ArrowUpColor | clrGreen | Bullish doji arrow color |
ArrowDownColor | clrRed | Bearish doji arrow color |
ArrowSize | 1 | Arrow icon size |
EnableAlerts | true | Enable sound alert on doji detection |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.