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Doji Candlestick
When doji candlestick forms, it indicates that the market opens and closes at the same price. This means there is equality and indecision between buyers and sellers, with no one controlling the market. See the example below. this signal means that the market didn’t decide which direction will take. When this pattern occurs in an uptrend or a downtrend, it indicates that the market is likely to reverse. Interpretation: Reversal Strong: After long uptrend and downtrend Example : Doji Example at Resisitence The chart above shows how the market changed direction after the formation of the Doji candlestick.The market was trending up, that means that buyers were in control of…
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What Is a Candlestick Chart?
A candlestick chart is a tool used in financial analysis to show the highest, lowest, opening, and closing prices of a stock or other security for a specific time period. Each “candlestick” on the chart shows one time period, like a day or an hour, and visually represents how the price moved during that time. Components of a Candlestick Body: The thick part of the candlestick, which represents the range between the opening and closing prices. Wicks(Shadows): The thin lines above and below the body, indicating the highest and lowest prices during the period. Description Long Body: Indicates strong buying or selling pressure. A long green body shows strong buying…
