The doji is a common pattern found in candlestick charts of financially traded assets (stocks, bonds, futures, etc.) in technical analysis. It is marked by its small length - which means a small trading range - with similar opening and closing prices.
Doji represents indecision in the market. Doji is not so significant if the market is unclear, as non-trending markets are inherently an indication of indecision. If the doji is formed in an ascending or descending trend, this is usually seen as significant, because it is a signal that the buyer loses confidence when formed in an uptrend and a signal that the seller loses confidence when seen in downtrend.
Video Doji
Jenis Doji
Doji is a major trend reversal indicator. This is especially true when there is a high trading volume following the extended step in both directions. When the market has been on the uptrend and trading to the highest level higher than the previous three trading days, failing to maintain it, and closing at 10% lower than the trading range of that day, there is a high probability of a downtrend in the next day. Likewise, when the market has been in the downtrend and traded to a new low point lower than the previous three trading days, failing to maintain it, and closing at 10% over the trading range of that day, there is a high possibility of uptrend in the following days.
Doji 4-Price is a horizontal line indicating that the height, low, open and close are equal.
Maps Doji
See also
- The candlestick chart
- The Harami Cross
- Doji bintang
References
External links
- Video Examples and Doji Charts, full-sourced references
Source of the article : Wikipedia
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