doji candlestick

 DOJI - CANDLESTICK

 

 

The doji candlestick occurs when the open and closing price are equal.The Bulls and the Bears are conflicting. This is an alert to investors to take heed for possible trend reversal.

 

DOJI BEAR

 

 

During an uptrend, the market builds strength on a long white candlestick and gaps up on the second candlestick. However, the second candlestick trades within a small range and closes at or near its open. This is a Confirmation of a trend reversal would be a lower open on the next candle.

  DOJI BULLISH

 

 

During a downtrend, the market strengthens the bears with a long black candlestick and gaps open on the second one. However, the second candlestick trades within a small range and closes at or near its open. This is confirmation of trend reversal and may open high on the next candle and generally shows the potential for a rally.

Signal Reliability : Medium/Moderate Trend Reversal.