Trading

Doji candlestick pattern

A Doji candle is a candlestick pattern  Basically, there are three major types of Doji candlesticks, the typical classic Dorji, the Gravestone Dorji, and a Dragonfly Doji as I labeled for you on the left side. The characteristics of the Doji candlestick are that it has long shadows, but nobody at all, as you can see here, it has long shadows, but nobody at all.

It indicates that there is a tug of war between the buyers and sellers, the buyers and sellers. Both are in a confusion as to what to do and what not to do. This is the typical classic Doji candlestick, also known as Long Ledge Dorji. This is the Dorji, which you will find mainly on the charts a lot. You can see it has long shadows, but nobody at all. Here is the opening price and here is the closing price. This is high and low. The opening price is very close to the closing price.

Doji candlestick

As you can see over here. They are basically sticks. Nobody at all. The buyer started hard here to track the price up and the sellers tried hard to drive the price down and the counter closed very close to the opening and closing part. So it means that there is confusion in the market. This is the gravestone Doji candlestick. The gravestone Doji candlestick is basically you all know the alphabet D it is the opposite of Alpha Beta. It is cheap and is the opposite of Alpha Beta. You can see it here. Have a look. It has some long shadows, but nobody at all. This was a high price. This was low and the open-closed remained the same.

Buyers and sellers both were in confusion about the last one. The Dragonflight Doji is like the alphabet T. It has the same characteristics. Long shadows, but nobody at all. This is the opening price, the closing, and the high and the low remains the same. So we have discussed three types of major Doji over here. So what is the interpretation of the interpretation is simple. The interpretation of Dhody is whenever Dorji is found on a bigger time frame on a chart, it means that the trend is about to reverse if the market is in a bearish sentiment at a rally now towards the upside.

If the market is in bullish sentiment, it will rally toward the downside. And the last one more important thing which I have experienced from my trading. The Doji candlestick doesn’t work in the market when it is consolidating or it is sideways. Always look for Dorji in the trending markets, so it would add an extra confluence through your trading strategy. So now let’s go to the chart and find real-life examples. Let’s dive in. This is the US dollar and Japanese yen for our chart. We’ll be identifying some Doji candlesticks over here. So let’s see. I’ve already marked Doji for you previously.

What did I explain?

I always look for trending markets. The market was in a clear downtrend or hit the Dorji candle, as you can see.

What does this mean?

The buyers and sellers both are confused. There’s a tug-of-war between the Doji candlestick and the downtrend, which indicates there is a chance of possible trend reversal. And you can see the trend changed afterward. The price rallied all the way up till here. Now in the uptrend. See, we got another Dorji over here. This is another Dorji. We got another Doji Orit and the price dropped. Let’s find a few more examples here. The price was in a clear downtrend and the price rallied all the way up. This is the duty you can see long shadows and nobody. This is when the Doji appeared and the price rallied all the way. Let’s find another one. Here we have a gravestone, Dorji, here. This is the gravestone Dorji.

What does this indicate?

A possible trend reversal and you can see the price dropped afterward. So this is how simple the Doji candlestick is, try to practice and find Doji on any beer you would like. I like Analects and try to practice as much as possible. These candlesticks give us extra confidence in our trading system. We do not trade based upon only one confluence. We take trades upon multiple confluence. But as candles are the language of the market, we have to study them.

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