Dragonfly Doji with DMI and Volume Filters

8 Jul 2020

A Dragonfly Doji is a type of candlestick pattern that can signal a potential reversal in price to the downside or upside, depending on past price action. It's formed when the asset's high, open, and close prices are the same. The long lower shadow suggests that there was aggressive selling during the period of the candle, but since the price closed near the open it shows that buyers were able to absorb the selling and push the price back up.

The study enhances standard Dragonfly Doji accuracy by clearing out market noises and manipulations from the indicator's triggers. Specially selected values of Directional Movement Index (DMI) components detect only strong signals while RSI bands indicator is used to find the safiest signals' closure moments.

The indicator can be applied to trading pairs with USD, USDT, ETH and BTC quote currencies. It is better to check the recent performance on each particular trading pair before apply it. The Indicator supports spot, futures and marginal trading exchanges. The best performance is obtained while using at 15m timeframe and for scalping signals

Advantages of this indicator:
1. Weak signals and market noises are filtered. This allows to receive only strong and confirmed alerts
2. The indicator includes both

• Study with built-in custom alerts to use with your own software through web hook connection.
  
• Strategy with configurable risk management settings (order size, commission, take profit, stop loss and trailing). This provides you opportunity of direct broker connection and allows to conduct backtests before applying the strategy to real account
  

How to use?
Long signals:
1. Apply indicator to the trading pair your are interested in at 15m timeframe chart
2. Once conditions are met price action candle will be colored yellow and DD label will be drawn. Place a long position and wait. The
3. Once price action breaks RSI resistance band, retraces and closes below the band the signal is finished and the position should be closed

Automatic strategy:
When conditions of long or short position from the strategy are met the script opens position.
Strategy.exit closes the position once risk management settings are met.
Strategy.close closes the position once RSI band rejection is confirmed
If you want to obtain access to the indicator please send us a personal message

If you want to obtain access to the indicator please send us a personal message or leave a comment