Candlestick
Doji Line Pattern
Potential Reversal, Top or Bottom
The
Doji patterns are essentially a group of pattern types.
Dojis are essentially small "bodied" candles
- smaller than other bars relative to the location of
the doji. For example, if a small bodied bar formed,
I would consider it a "doji type"
Because
dojis often have a body range (where the open price
does not equal the close price), there will often be
white or black doji bars. Color is not important in
the formation of a doji bar. A black doji is no different
than a white doji - in regards to the pattern type.
The
other type of doji pattern is called the "doji
cross" or "true doji". This is when the
open price EQUALS the close price.
The
"Body" of the Doji pattern is oftem support
and resistance. I've found these to be a better indication
of actual support/resistance than any other candlestick
pattern. If you get multiple doji's in a row, try to
average the body levels to find support and resistance.
Notice:
Investors should continually watch for Dojis and the
Umbrella group of candles. These candle types will typically
precede a major market reversal. In fact, many investors
have told me these types of candles are some of the
most important candle types for investors to use.
CONTINUE
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