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Doji Pattern: Neutral

Doji patterns form when a security's open and close are equal, appearing as a cross or plus sign. Doji indicate indecision between buyers and sellers, with prices moving above and below the open but closing at or near the open. Long-legged doji have long upper and lower shadows of almost equal length, showing significant indecision. Dragonfly doji have the open, high and close equal, and a long lower shadow, indicating sellers drove prices lower but buyers pushed them back to the open by the close. Gravestone doji have the open, low and close equal, and a long upper shadow, showing buyers drove prices higher but sellers pushed them back to the open by the close.

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370 views4 pages

Doji Pattern: Neutral

Doji patterns form when a security's open and close are equal, appearing as a cross or plus sign. Doji indicate indecision between buyers and sellers, with prices moving above and below the open but closing at or near the open. Long-legged doji have long upper and lower shadows of almost equal length, showing significant indecision. Dragonfly doji have the open, high and close equal, and a long lower shadow, indicating sellers drove prices lower but buyers pushed them back to the open by the close. Gravestone doji have the open, low and close equal, and a long upper shadow, showing buyers drove prices higher but sellers pushed them back to the open by the close.

Uploaded by

Krishnadeep Khakhria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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DOJI

Pattern: Neutral
Doji form when a security's open and close are virtually equal. The length of the
upper and lower shadows can vary and the resulting candlestick looks like a
cross, inverted cross or plus sign. Alone, Doji are neutral patterns. Any bullish
or bearish bias is based on preceding price action and future confirmation. The
word “Doji” refers to both the singular and plural form.

Doji convey a sense of indecision or tug-of-war between buyers and sellers.


Prices move above and below the opening level during the session, but close at
or near the opening level. The result is a standoff. Neither bulls nor bears were
able to gain control and a turning point could be developing.
Long Legged Doji

Long-legged doji have long upper and lower shadows that are almost equal in
length. These doji reflect a great amount of indecision in the market.
Long-legged doji indicate that prices traded well above and below the session's
opening level, but closed virtually even with the open. After a whole lot of
yelling and screaming, the end result showed little change from the initial open.
Dragon Fly Doji

Dragonfly doji form when the open, high and close are equal and the low
creates a long lower shadow. The resulting candlestick looks like a “T” with a
long lower shadow and no upper shadow. Dragonfly doji indicate that sellers
dominated trading and drove prices lower during the session. By the end of the
session, buyers resurfaced and pushed prices back to the opening level and the
session high.
The reversal implications of a dragonfly doji depend on previous price action
and future confirmation. The long lower shadow provides evidence of buying
pressure, but the low indicates that plenty of sellers still loom. After a long
downtrend, long black candlestick, or at ​support​, a dragonfly doji could signal a
potential bullish reversal or bottom. After a long uptrend, long white candlestick
or at ​resistance​, the long lower shadow could foreshadow a potential bearish
reversal or top. Bearish or bullish confirmation is required for both situations.
Grave stone Doji

Gravestone doji form when the open, low and close are equal and the high
creates a long upper shadow. The resulting candlestick looks like an upside
down “T” with a long upper shadow and no lower shadow. Gravestone doji
indicate that buyers dominated trading and drove prices higher during the
session. However, by the end of the session, sellers resurfaced and pushed
prices back to the opening level and the session low.

Information By: CityInvest Divish S.


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