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What is Doji formation and the importance of dojiBack

What is candlestick?

A candlestick is a charting pattern which gives us signal about the market. A Candlestick patterns represnt about the market psychology. For candlestick pattern we need OPEN, HIGH, LOW, CLOSE price. There are so many candlestick patterns like Doji, Engulf, Harami, Star patterns.

What is Doji Patterns and the importance of the Doji?

This Doji has long upper and lower shadows the middle of the day's trading range, clearly reflecting the indecision of traders. No real body or minor body which will not visible properly. If it is form in the top of the trend that indicate the buyers are losing the control sellers are now involve in it with high volume. It occurs at a support or resistance level would it have some potential as a reversal candle. Next day market open with gap then it is a confirmation of reversal. Sell if market trend is up; Buy if in down trend. Stop loss will the low and high of Doji. 

Posted on: 03-Mar-2015 | Posted by: NIFM | Comment('0')
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