Vladimir Ribakov explains the double doji candlestick pattern: two consecutive candles with tiny bodies and long wicks that signal indecision between buyers and sellers. It typically appears at the end of a strong trend and often precedes a directional move. On EUR/AUD, a double doji at the end of a bearish trend led to a 200-point upside move.
Chapters
How to spot and use double doji candlestick pattern. So first of all, this is how a doji candlestick pattern looks like. Big spikes, tiny body, or no body. As you can see, in that case it's a flat, which means open and close price are equal or almost equal. And the spike on the top of the candle and the lower part of the candle are bigger than the body itself. Double doji means we have two following dojis, one after another. Remember, candles with no body or very little body, with bigger spikes on the upper and the lower part of the candles. Doji represents sort of an arm wrestle. Fight between the buyers and the sellers until one of the forces will put enough force to win this battle. Like with any candlestick pattern, same rule applies to the double dodges— preferably to see it to form, to happen, to appear at the end of a clean trending structure or strong momentum wave. Many times after double doji, we should expect one of the forces to take the control and push the price to one of the directions. Many times the double doji would be a reversal sign, but in clear trending conditions, double doji could represent the end of correction and return to the original trend. Here is an example on dollar CAD. Double doji, strong momentum. To the downside after the pattern is broken. Euro Aussie at the end of a massive bearish trend, double doji, and as soon as it breaks upside, the trend reverses and pushes up for more than 200 points.
