Must-Have for Bull Market Bottoming: How to Accurately Capture the Main Uptrend with Doji Candle Patterns

In the crypto market, the greatest test is not chasing the rally, but accurately bottom-fishing during corrections. When specific candlestick patterns appear within a bullish trend, they often indicate that the correction is nearing its end, and a new wave of upward movement is about to begin. Mastering this pattern recognition method can significantly improve your win rate when entering positions.

Core Features of the Double Doji Pattern

This classic candlestick combination consists of two candles with clear identifiable features:

First, the previous candle must be a medium or large bullish candle, representing the accumulation of bullish strength. Second, the following candle appears as a long doji, positioned exactly at the right shoulder of the previous bullish candle. The yin-yang nature of the doji can vary flexibly, but the pattern structure is fixed—we call this special combination the “Bullish Candle Right Shoulder Doji Pattern.”

The existence of the doji itself reflects market sentiment, indicating that buyers and sellers have reached a temporary balance at that point.

Different Significance Based on Position

The same candlestick pattern appearing at different price levels has entirely different market implications, which determines our trading strategy:

Bottom Area Setup Signal: If the double doji pattern appears near the bottom, it is a typical pre-attack formation. At this point, the long doji acts as a transitional role, also serving as a shakeout to clear out weak hands, preparing for the subsequent main upward wave. Investors should decisively enter at this position.

Accumulation During the Main Uptrend: When the pattern appears within an existing upward trend, its role shifts to a platform for energy accumulation. This signals that bulls are brewing for the next phase, and the appearance of the doji indicates that prices are gradually digesting positions amid oscillation, followed by a stronger upward push.

Top Reversal Warning in High Area: If the same pattern appears in a high-price zone with already significant gains, a change in mindset is needed. It then becomes a top signal, indicating the rally is weakening, and it’s time to consider reducing positions or exiting.

Practical Application Scenarios of the Double Doji

There are various ways the doji can appear in the market, each representing different market states:

Type 1: Doji Adjustment After Long Bullish Breakout
After a moderate volume increase at a low level, a long bullish candle with volume suddenly appears (or a limit-up), with volume structure showing strong buying. This is a signal to chase the rally directly, indicating main capital involvement.

Type 2: Engulfing Pattern of Yin and Yang Candles
On the first day, a long bearish candle closes, followed by a reversal to a bullish close on the second day, with the bullish candle completely engulfing the previous day’s bearish body. Investors can buy on the second day’s close, as this reversal often leads to strong gains.

Type 3: Upper Shadow Plus Doji Pattern
The first day closes as a bullish candle; the second day’s candle first moves up then down, closing with a long upper shadow (over 2% of the price) plus a doji structure, with volume significantly increasing. Usually, by the third day, a long bullish candle will engulf the upper shadow of the second day, making this a high-probability short-term pattern.

Type 4: Breakout Based on Bottom Patterns
When candlesticks rely on bottom structures like V-shape, W-shape, or arc bottoms, and surge upward to break major moving averages (especially monthly lines), a volume breakout can be followed by a pullback or direct chase. This bottom-based doji signal often marks the boundary between bull and bear.

Type 5: Continuous Daily Bullish Candles Forming a Leading Stock
In a rally exceeding the mid-term, a sequence of 7 or more consecutive daily bullish candles often forms the leading edge of the rally. Investors can enter near the third day’s resistance breakout, with subsequent gains often exceeding 10%.

Key Details for Precise Entry

To truly leverage these patterns for stable profits, the following conditions should be met simultaneously:

Clear correction during an uptrend: This is the first sign of shakeout, indicating main force is clearing weak hands.

Decreasing volume during the correction: Volume contraction suggests selling pressure is waning, and buyers are quietly accumulating.

Two doji patterns appearing at the bottom area: Not just one, but double confirmation strengthens the signal.

Volume corresponding to doji reaching extreme lows: Confirming the bottom, greatly increasing the probability of an upward move.

Final bullish candle with volume breakout: This is the genuine entry signal, representing the official start of bullish strength.

In a bull market, learning to identify these candlestick combinations and waiting for the right conditions to enter decisively often allows participation in the main upward wave with the best risk-reward ratio.