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RoboForex - www.roboforex.com
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[QUOTE="Vlad RF, post: 198412, member: 61796"] [B][SIZE=5]Doji Pattern: Types and Trading[/SIZE][/B] [I]Author: Victor Gryazin[/I] [CENTER][IMG]https://roboforex.com/uploads/img/news/main/roboforex-header.jpg[/IMG] [B]Dear Clients and Partners,[/B][/CENTER] This overview is devoted to the types of the Doji pattern and ways of trading it. This is a candlestick pattern that appears on price charts from time to time and signals about an upcoming correction or a reversal of the current trend. [SIZE=5]What is Doji?[/SIZE] Doji is a potentially reversal pattern consisting of one candlestick that gave it it's name. Doji candlesticks are extremely important tech analysis elements. It does not have a normal body because it's opening and closing prices nearly coincide, with a maximum difference of a couple of points. When a Doji appears on the chart, it indicates a temporary balance, market uncertainty because neither bulls nor bears succeed in pushing the price this or that way The place where a Doji forms on the chart is extremely important: [B]1. Doji in a flat.[/B] When this pattern is in the middle of the range, it gives no trading signals. In such a case, a Doji simply reflects temporary consolidation of the quotations before a new price impulse starts. [B]2. Doji at the market high indicates a possible reversal downwards. [/B]When this pattern appears after some growing white candlesticks, this might mean the ascending price impulse is nearly over. Setting new highs, bulls reachea a strong resistance area that they failed to break through. Now bears are ready to counterattack, provoking a descending correction or even a reversal downwards. [B]3. Doji at the market lows signals about a potential reversal upwards. [/B]When the pattern forms after declining black candlesticks, this might means the descending impulse is nearly over. Bears reached a strong support level where they faces bulls. Now the latter ones, seeing that their rivals are weak, are trying to turn the market upwards. All in all, a Doji appearing at the highs or lows of the chart signals about a possible reversal. Also, a Doji candlestick might be a part of several other reversal patterns; a pattern also called Doji can later transform into some other reversal candlestick combination. [img]https://blog.roboforex.com/wp-content/uploads/2021/08/Doji.png[/img] [SIZE=5]Bottom line[/SIZE] Doji is a potentially reversal pattern of candlestick analysis that forms on the local extremes of the price chart. It can work both on its own and as a part of other reversal patterns. Before you begin real trading, backtest you understanding of Doji and practice on a demo account. [URL=https://blog.roboforex.com/blog/2021/08/06/doji-pattern-types-and-trading/?utm_source=earnforex.com&utm_medium=cpc&utm_campaign=rf_en_external_forums_blog&utm_content=text]Read more at R Blog - RoboForex[/URL] [B]Sincerely, RoboForex team[/B] [/QUOTE]
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