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Doji

  • Thursday, 21 May 2009 07:49
  • Last Updated Monday, 03 May 2010 23:16
  • Written by Desmond Wira

Doji usually shows reversal trend. So you have to be careful when finding Doji, especially when Doji shows after Marubozu. This condition tells that investor appetite for buying or selling is dramatically reduced, and investor is waiting for another.signal of reversal. Trend reversal should be confirmed by looking at candle after Doji.

Doji Candlestick

Type: Can be neutral or reversal
Doji and four price doji signals neutral pattern
Long legged doji, gravestone doji and dragonfly doji signals reversal

Characteristic: the same closing and opening price
Doji can appear in several form as you can see in left image

 

Doji Candlestick in chart

 

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