A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits
by Michael C. Thomsett
Doji Formations
The long candlestick is easily spotted merely due to its size. A more difficult session to spot is the doji, a word in Japanese that means “mistake.” This is a session with little or no real body, resulting from the opening and closing price being at the same level. So instead of a rectangular real body, the doji reveals only a horizontal line.
Key Point
A doji consists of opening and closing prices at about the same price, forming a horizontal line in place of a rectangular real body.
The doji comes in several variations. Among these are the bullish dragonfly, the bearish gravestone, and the long-legged doji and spinning top (both either bullish or bearish depending on the context in which the session is located). These are ...
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