Types of Doji
We analyze now a special training Candlestick Chart: The Doji. When there is a Doji formation, we are in a strong signal of trend reversal, very reliable.
Examine the four types of formations Doji:
• The first is the formation of Doji Doji Star. This training is when above and below the body of the candle shadows have the same size, indicating a 'turnaround.
• The second training is the Long-legged Doji, which is when the shadows of the Doji candle are very long. It does not matter if the longest shadow is above or below the body of the candle. Long shadow means that prices have moved very fast in both directions, only to return as before.
• The third formation is the Gravestone Doji, which is when the candle has a shadow, which is placed above the body of the candle itself. If we find a gravestone Doji at the end of an uptrend, it is a signal of trend reversal.
• The fourth training is the Dragonfly Doji, which is totally opposed to training Gravestone Doji. In Dragonfly Doji, the shadow of the candle is located just below the body of the candle. If this training is at the end of a downtrend, is a strong signal of market reversal.
Tags: directions, Examine, of market