The doji represents indecision in the market. A doji is not as significant if the market is not clearly trending, as non-trending markets are inherently indicative of indecision. If the doji forms in an uptrend or downtrend, this is normally seen as significant, as it is a signal that the buyers are losing conviction when formed in an uptrend hikkake pattern indicator forex a signal that sellers are losing conviction if seen in a downtrend.
Neutral: Dojis form when the opening and closing prices are virtually equal. Long-Legged: This doji reflects a great amount of indecision about the future direction of the underlying asset. Gravestone: The long upper shadow suggests that the direction of the trend may be nearing a major turning point. Dragonfly: The long lower shadow suggests that the direction of the trend may be nearing a major turning point. A doji is a key trend reversal indicator.
This is particularly true when there is a high trading volume following an extended move in either direction. 4-Price Doji is a horizontal line indicating that high, low, open and close were equal. The Trading Book: A Complete Solution to Mastering Technical Systems and Trading Psychology. This finance-related article is a stub. You can help Wikipedia by expanding it. This page was last edited on 21 May 2018, at 20:05.
Are you using candlestick charts as your default chart type for price action analysis? Most likely, the answer is yes. In that case, why not make the most out of it by mastering candlestick patterns? While the encyclopedia is great for reference, there is no need to memorise the 929-page compendium. Simply learn these 10 candlestick patterns for an illuminating foundation. It looks like a cross, with the same opening and closing prices. In a Doji candlestick, price is essentially unchanged.