The Doji pattern looks like a plus sign - the body is basically a thin line with long upper and lower shadows. The Doji is the first candlestick pattern that most traders learn, and probably one of the most important. It is formed mainly because the opening and closing prices of the session are almost the same. Because the upper and lower shadows represent the volatility of the market during that time, the doji pattern means that neither bulls nor bears are able to dominate the market during that time.
A doji indicates that the market is pending. During its formation, the market moved up and down, but eventually closed near the opening price. The market cannot move the market up or down because the market is pending, and the pending market is likely to be a key point where traders can look for opportunities to profit from it. What happens after a doji is more important than the doji itself, which can only tell us that the market is pending. If the market moves out of the doji in the trend, it may be a good pullback signal. The common understanding is that the doji represents a short break in the trend, and we can re-enter the market while the trend continues, unfortunately, this understanding does not work every time. Market pending and its pullback may have deeper causes and impressions within a larger frame.
Multiple dojis simply indicate a pending continuation of the market. Think back to price action under the influence of a major fundamental event, which the world knew was about to happen, so there would be little chance of a big rally or pullback before it happened. During such a market pending period, multiple dojis may appear.
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A doji indicates that the market is pending. During its formation, the market moved up and down, but eventually closed near the opening price. The market cannot move the market up or down because the market is pending, and the pending market is likely to be a key point where traders can look for opportunities to profit from it. What happens after a doji is more important than the doji itself, which can only tell us that the market is pending. If the market moves out of the doji in the trend, it may be a good pullback signal. The common understanding is that the doji represents a short break in the trend, and we can re-enter the market while the trend continues, unfortunately, this understanding does not work every time. Market pending and its pullback may have deeper causes and impressions within a larger frame.
Multiple dojis simply indicate a pending continuation of the market. Think back to price action under the influence of a major fundamental event, which the world knew was about to happen, so there would be little chance of a big rally or pullback before it happened. During such a market pending period, multiple dojis may appear.
Source: Forex Rebate https://www.forexrebateking.com
