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Watch for Stop-Loss Orders

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Stop-loss orders are vital to add to your trades when you work with the doji. You can produce a stop-loss order in the direction of where the stock was going. If you feel the doji suggests a downtrend will go upward, you can produce a stop-loss order that is a little lower than the value of the stock as you enter the position. A better idea is to use a gap between the set price and the stop-loss order that is twice the length of the volume bar that went in the opposite direction. If the stock you are investing in has a gravestone doji, place a stop-loss order with two gravestone shadow lengths on it. This should be enough to protect you from any dramatic changes or reversals as the stock moves forward.