In this article, We learn about "Doji".Let's Go!
Doji is a single candlestick pattern formed when the open and close prices are equal.
The lack of substance can create a sense of indecision or tug-of-war between buyers and sellers, and the balance of power may shift.
The upper and lower shadows may vary in length and the resulting candlestick will look like a cross, an inverted cross, or a plus sign.
The Doji itself is often considered a neutral pattern, but it is part of a multi-candlestick pattern.
The Doji is the smallest and simplest of all candlesticks, making it very easy to identify. Look for the following criteria:
Doji’s horizontal line indicates that the opening and closing prices occurred at the same level.
Doji’s vertical line represents the total trading range within the time frame.
The shape of a doji indicates indecision between buyers and sellers.
When you see a doji candlestick pattern, you know the day's close was very close to the open, which is why the candle has no body.
Hesitation because neither buyer nor seller has control.
A "tug of war" is going on, with neither side having an advantage.
While the price may have fluctuated throughout the trading session, it eventually returned to its original opening price.
Such moments of indecision often signal a trend reversal.
Dojis are not that important if the market trend is not clear, as a sideways or choppy market indicates indecision.
If a Doji forms during an uptrend, this is usually considered significant as it indicates that buyers are losing confidence.
If a Doji forms during a downtrend, this is often seen as significant as it shows that sellers are losing confidence
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