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Doji candlestick pattern

Doji candlestick pattern

The opening and closing prices of the commodity are equal in this pattern.

This pattern consists of a single candle.

The Doji candlestick pattern usually looks like a cross, inverted cross or plus sign.

When the buyers and sellers fail to take a decision in the commodity market, it gives rise to Doji pattern.

Classification of Doji pattern

The candlestick pattern can be classified into four types.

1.Neutral Doji

2.Long-Legged Doji

3.Gravestone Doji

4.Dragonfly Doji


doji

1. Neutral Doji

This is a small candlestick pattern.

When the “buying and selling is at equilibrium”, this pattern occurs.

At the middle of the day’s high and low, the commodity opens and closes.

The future direction of the trend is regulated by the prior trend and the Doji pattern.

2.Long-Legged Doji

As the name suggests this is a long candlestick pattern.

When the “supply and demand” factors are at equilibrium, this pattern occurs.

At the middle of the day’s high and low, the commodity opens and closes.

The trend’s future direction is regulated by the prior trend and Doji pattern.

3.Gravestone Doji

This pattern gives rise at the bottom of a downtrend when supply and demand factors are at equilibrium.

At the day’s low, the commodity opens and close.

The future direction of the trend is regulated by prior trend and Doji pattern.

4.Dragonfly Doji

This pattern gives rise at the peak of an uptrend when the supply and demand factors are at equilibrium

At the day’s high, the commodity opens and closes.

Inference from Doji pattern:

Doji patterns are helpful to identify trends.

When it gives rise at the support level, it can be treated as an “entry point.”

When it gives rise at the resistance level, it can be treated as “exit point.”

To ensure that our trading strategy is effective, it’s always recommended to mix and match the patterns and indicators.

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