After a big move up in the major indexes to major resistance, I always look for DOJI’s. DOJI’s are indecision candles, showing the balancing of supply and demand for a stock. When I am looking for reversal sell signals, I like to combine the DOJI with other indicators. Here are two…
- An overbought Red MACD line.
When constructing a scanner to look for DOJI’s I like to be creative.
Today I was looking for stocks over 40, with average daily volume of at least 500,000 shares. We are looking for stocks that usually have a lot of movement. I have found that stocks under 40, and less than 500,000 share volume show many false DOJI’s. Here is my scan on TOS.
I chart ALL of these stocks, and then find stocks that are at resistance, and overbought. LOW fits all the criteria. If the trade was taken on the opening, it was good for 1.30 points!
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