When a doji candlestick is spotted in the market, first look back to determine whether there was enough movement for you to profit from a retracing. A retracing may only be about one third of the distance since the last low.

Step 2 involves checking an oscillator to make sure the current price is shown as overbought or oversold. An oversold or overbought market plus the doji is a good indication that you can get entangled. You may look at the trading volume. If trading is trailing off, then this is another sign that a reversal could be about to occur. When you open a trade, be prepared at first for a retracement. Either set a limit order at the point that you would expect a short term retracement to reach, or watch and do this manually . With the other half, you could move the stop to a no-lose position close to your opening price, and let it run in case a major reversal occurs. Of course, there is always a risk, as with any kind of speculative trading. You do need to know what you are doing and this sort of trading needs lots of practice, although it’s a straightforward system.