Doji

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Doji

Author: admin | Total views: 53 | Word Count: 399 | Category: Forex trading signals | Date: Jun 8th 2008

A formation that doesn’t have or have a very tiny real body is called a Doji. Doji is formed when the opening price and the closing price are almost the same or similiar. It indicates the buyers could not manage to force the price to go higher then the opening price. And before the price closed, sellers could not make the price to go lower than the opening price. Therefore, a formation of Doji can be seen from a chart. A conclusion can be made from a Doji is that the market price is unstable, in the meaning that the price doesn’t have the strength to go upwards or downwards.

There are four main Doji, which is named Long-legged, Gravestone, Dragonfly and 4-price. Different Doji(s) would represent by different charts, where each doji function differently.

A DOJI is usually occurs in a market tops or downs. Although DOJI is a reversal sign, but it can’t work well on its own before the next candlestick body appears. A Doji also indicates that the market is in an indecision condition, the opening and closing prices are almost the same, neither bullish nor bearish, the strength of the sellers are almost the same as the buyers. There is a common usage for this DOJI: find out the lowest price of the DOJI and use that data to predict the how high the prices can go.

Definition >>>

When there is a short Doji gapped below a long black candlestick body, and it is occurred in a downtrend market, then this is a Bullish (Doji) Star Pattern.

Recognition Criteria:

1. The market is considered as a downtrend market.

2. There is a long candlestick body before the short Doji.

3. The short Doji is gapped below the previous long candlestick body and appeared as a signal of turning point.

4. The shadows of the Doji is short as it indicates the market is not yet stable.

Explanation:

A Bullish Doji Star pattern is a reversal sign that usually occurs in a downwards trend market. In this phenomenon, first the bears take control in the market, but then there would be a moment that the bears and bulls have the equally same strength. However, the bulls take over the bears power at last, making the bears weak. Normally the market would be bullish after this formation.

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Secret Sebastian

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A formation that doesn’t have or have a very tiny real body is called a Doji.  Doji is formed when the opening price and the closing price are almost the same or similiar. It indicates the buyers could not manage to force the price to go higher then the opening price. And before the price closed, sellers could not make the price to go lower than the opening price. Therefore, a formation of Doji can be seen from a chart. A conclusion can be made from a Doji is that the market price is unstable, in the meaning that the price doesn’t have the strength to go upwards or downwards. <o:p></o:p> 
There are four main Doji, which is named Long-legged, Gravestone, Dragonfly and 4-price. Different Doji(s) would represent by different charts, where each doji function differently. <o:p></o:p> 
A DOJI is usually occurs in a market tops or downs. Although DOJI is a reversal sign, but it can’t work well on its own before the next candlestick body appears. A Doji also indicates that the market is in an indecision condition, the opening and closing prices are almost the same, neither bullish nor bearish, the strength of the sellers are almost the same as the buyers. There is a common usage for this DOJI: find out the lowest price of the DOJI and use that data to predict the how high the prices can go. <o:p></o:p> 
<o:p> </o:p> 
Definition >>><o:p></o:p> 
When there is a short Doji gapped below a long black candlestick body, and it is occurred in a downtrend market, then this is a Bullish (Doji) Star Pattern.<o:p></o:p> 
Recognition Criteria:<o:p></o:p> 
1. The market is considered as a downtrend market. 
2. There is a long candlestick body before the short Doji. 
3. The short Doji is gapped below the previous long candlestick body and appeared as a signal of turning point. 
4. The shadows of the Doji is short as it indicates the market is not yet stable.<o:p></o:p> 
Explanation: <o:p></o:p> 
A Bullish Doji Star pattern is a reversal sign that usually occurs in a downwards trend market. In this phenomenon, first the bears take control in the market, but then there would be a moment that the bears and bulls have the equally same strength. However, the bulls take over the bears power at last, making the bears weak. Normally the market would be bullish after this formation.<o:p></o:p> 
<o:p> </o:p> 
<o:p> </o:p> Article Source: <a href="http://www.easyforexstrategy.com" target="_blank">Easy Forex Strategy</a> About the Author:  
Secret Sebastian
Professional Forex Trader 
<a href="http://www.learnforexsecret.com">Learn Forex Trading</a>