The doji showing in the results of the Reversal TradeFinder is not formed on a 20 day high/low. Why?
Posted by Charlie Trader on 28 March 2018 03:12 PM

The algorithms in the TradeFinder allow for an extreme to occur the day before the actual doji.  This is to allow for dojis that form and just miss out on an extreme.

This is why some of them appear where it seems inappropriate.

In those cases where the dojis are clearly not anywhere near the extreme in price, you ignore and move onto the next opportunity.

Where the doji is just a pip or so away from the extreme, then you can take it as a doji forming at an extreme, but we are talking literally a pip or two away.

It is done this way to ensure we don't cut out potential decent opportunities.

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