Doji
Doji
A typical Doji will usually have an opening price equal to the closing price.
Doji candlestick shows a balance between buyers and sellers. Neither the buyers nor the sellers have been able to gain control and as a result, the market is showing signs of tug-of-war. This could be a trend reversal, or it could be a signal of a slowing down of the trend. Depends on where the Doji pattern forms in the trend.
There are different types of doji candlestick patterns:
Dragonfly Doji
Dragonfly Doji is a single candlestick pattern, when the Dragonfly Doji appears in a downtrend, it signals that the trend may reverse into an uptrend.
Meaning of Dragonfly Doji:
When the market opened, the sellers took full control and pushed the price down very low.
At the peak of the sellers (at the lowest price), huge buying pressure appeared pushing the price up and closing at the opening price which was also the highest price.
The Dragonfly Doji candlestick pattern shows that buyers are in complete control in the following sessions, the longer the lower shadow, the stronger the buying force, the higher the possibility of trend reversal.
Gravestone Doji
Gravestone Doji is a single candlestick pattern, when the Gravestone Doji candlestick pattern appears in an uptrend, it signals that the trend may reverse into a downtrend.
Meaning of Gravestone Doji:
When the market opened, the buyers took full control and pushed the price up very high.
At the peak of the bulls (at the highest price), huge selling pressure appeared, pushing the price back down and closing at the opening price was also the lowest price.
Gravestone Doji candlestick pattern shows that sellers have complete control in the following sessions, the longer the upper shadow, the stronger selling force, the higher the possibility of trend reversal.
Long Legged Doji
A Long Legged Doji is a candlestick pattern formed when the opening and closing prices are equal. The Long Legged Doji has a much longer upper and lower shadow than the regular Doji candlestick shape.
Meaning of Long Legged Doji:
The Long Legged Doji has roughly equal long upper and lower shadows, showing great indecision in the market, as prices trade very far above and below the session open, but close almost right at the close. opening price. After a lot of volatility during the session, the end result showed little change.
It is especially important to note that the Long Legged Doji is not a highly reliable reversal candlestick pattern, but it only shows investors' hesitation. This is a pattern that often appears during a significant bull or bear market. Also, when a Doji appears, it is a warning sign for a decrease in the strength of a bearish or bullish trend. Trader should consider when making buying and selling decisions when the Doji candle appears.
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