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Doji reaction forex strategy

Doji candle, drawn on our timeframe simply represents a range existing on lower timeframes. What we see as a reaction to doji star, can be considered a breakout by traders in shorter time ranges. This forex strategy uses this mini breakout to its advantage. What it looks for, is a breakout within the breakout. This is achieved by looking for a doji reaction formation, once the price break outside of BB tunnel boundaries.

Doji reaction forex strategy

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Strategy trades on reliable and fundamentally sound formation. Each trade is protected by stop loss with break even condition. Once the price reaches predetermined profit, possible reversal is avoided.

For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.

We have created expert advisor trading this forex strategy and we have tested it on EURUSD 1H historical data with positive results. It is certain, that strategy works just as well on any timeframe and currency pair. If you like, make sure that you leave a comment !

Forex strategy tools and indicators

Doji reaction forex strategy

Bollinger bands forex indicator (deviation 3, period 60): Standard tunnel is drawn. Price must trade either above or below the tunnel boundaries so we can approach a second level signal. In EA you can adjust BB deviation and period, to manipulates signal sensitivity and test the strategy for all the timframes and forex currency pairs

Doji star reaction signal: Doji, candle with narrow body will be followed by strong bullish/bearish candle closing above its high or low. This will be considered to be a breakout on lower timframes and our signal. We enter on signal candle close. Maximum doji star size (body) can be adjusted in inputs.

Break even condition (after 30 pips in test): Stop loss is moved at position open once the trade reaches predetermined profit.

Those settings were used for our successful test on 1H EURUSD chart. Tests have revealed 100+ profitable settings on EURUSD alone.

Forex strategy rules


Price closes below bottom BB. Downward momentum is present in the market.

Doji star is followed by strong bearish candle, closing below its low (signal candle). We enter the trade short on new candle open.

Doji reaction forex strategy

  • Stop loss: 80 pips

  • Take profit:100 pips

  • Break even after: 30 pips


Price closes above bottom BB. Upward momentum is present in the market.

Doji star is followed by strong bullish candle, closing above its high (signal candle). We enter the trade short on new candle open.

Doji reaction forex strategy

Stop loss: 80 pips

Take profit:100 pips

Break even after: 30 pips


Get MT4 expert advisor trading this forex strategy


We recommend you to use this forex strategy with one of our trusted forex brokers

(STP/ECN with MT4 bridge).

To win you must trade with broker on your side.

Disclaimer: Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer. TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.As seen in screenshots. Fully customisable.



“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 


Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

—  Marian, Proprietor of

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