The doji represents indecision in the market. A doji is not as significant if the market is not clearly trending, as non-trending markets are inherently indicative of indecision. If the doji forms in an uptrend elliott wave and fibonacci retracement forex downtrend, this is normally seen as significant, as it is a signal that the buyers are losing conviction when formed in an uptrend and a signal that sellers are losing conviction if seen in a downtrend.
Neutral: Dojis form when the opening and closing prices are virtually equal. Long-Legged: This doji reflects a great amount of indecision about the future direction of the underlying asset. Gravestone: The long upper shadow suggests that the direction of the trend may be nearing a major turning point. Dragonfly: The long lower shadow suggests that the direction of the trend may be nearing a major turning point. A doji is a key trend reversal indicator.
This is particularly true when there is a high trading volume following an extended move in either direction. 4-Price Doji is a horizontal line indicating that high, low, open and close were equal. The Trading Book: A Complete Solution to Mastering Technical Systems and Trading Psychology. This finance-related article is a stub.