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Doji candle pattern and the impact of doji

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Posted by : Nifm
20 April, 2015, 1:03 PM
Doji candle pattern and the impact of doji
A Doji candlestick has long upper and lower shadows the middle of the day's trading range, clearly reflecting the indecision of traders. No real body or minor body which will not visible properly. If it is form in the top of the trend that indicate the buyers are losing the control sellers are now involve in it with high volume. It occurs at a support or resistance level would it have some potential as a reversal candle. Next day market open with gap (up or down have to follow the trend according to trend gap is importance) then it is a confirmation of reversal. Sell if market trend is up; Buy if in down trend. Stop loss will the low and high of Doji.  According to doji in Lead: The trend of lead is running from 105.8 to 128.9 a nice uptrend. But if you check daily chart you will find a doji candle at the top level. That is indicating market may reverse anytime. If market sustain below 127 it is a good opportunity for sellers. After selling the stop loss will be around 129 trgt 121.8 or 117.8.

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