Seven Doji patterns – High Throw Bargain-Hunt
A Standard Doji is a pattern with upper and lower shadows only and no real body. The opening and closing price are virtually equal. It shows that in the market transaction, the long and short power has reached a temporary equilibrium. Although there have been brief trades above or below the opening price, but the closing price still returned to the position of the opening price, that’s why the candlestick pattern appears a Standard Doji-shaped trend. This is the most common of all dojis.
Long legged Doji
Usually the upper and lower shadows are long. Although the outlook of Long Legged Doji is similar to the Standard Doji, the amplitude of the Long Legged Doji indicates a new change in the market pattern. The price trend will change, especially when the Long Legged Doji appears at high or low prices, which means that a reversal may occur at any time.
A shooting star is a candlestick with a long upper or lower shadow. Usually, a shooting star at the bottom could potentially be used as a buy signal, and at the top could be used as a sell signal. When the shooting star appears at the top, Investors could look out for taking profits in time; when the shooting star appears at the bottom, Investors could consider to Long position. The emergence of shooting star is not just the appearance of a graphic. Rather, it is a harbinger of a rally at the bottom or a pullback at the top. Investors should adjust their investment behavior in time.
Dragonfly Doji/Gravestone Doji
There are 2 types of T-shaped star, which are Dragonfly Doji(with lower shadow only) and Gravestone Doji(with upper shadow only). It is most likely to appear during the contraction and consolidation phase. The T-shaped star indicates that the opening price, closing price and the highest price of the whole day are at the same price, and the lowest price is less than these three prices. If the lower shadow is longer, it indicates that the current price has a certain level of support.
But, if the T-shaped star appears in a position where there is already a certain increase, it does not rule out the possibility of forming an M head.
The 4-Price Doji refers to the closing price, opening price, highest price and lowest price of the day, all of which are equal. There are no fluctuations in the intraday, and the price is firmly sealed at the limit up or suppressed at the limit down, indicating that the market is extremely bullish or bearish, resulting in very inactive trading and no normal fluctuations. The 4-Price Doji can be divided into two states: limit up on opening price and limit down on opening price.
But whether it is rising or falling, a 4-Price Doji is a strong signal that the original trend will continue.
The Morning Star is composed of three K-lines: the first one, the market is in a downtrend, and there is a long bearish candlestick trend; the second one appears as a doji star that gaps down, and the highest price is lower than the lowest price of the previous day, create a gap with the previous bearish candlestick; on the third one, the market resumes its uptrend, the bullish candlestick is longer, and the price can reach the price range of the first bearish candlestick when it rises.
This pattern is a relatively strong signal of trend strengthening, which belongs to a clear reversal trend. The market will soon enter a volatile upward trend, and it is necessary to intervene in time.
The Evening Doji is just the opposite of the Morning Doji, which is also composed of three candlesticks: The first one, on the way up, appeared a long bullish candlestick; the second one appeared as a doji that gaps upwards and opens higher, and the lowest price is higher than the highest price of the first one, create a gap with the previous bullish candlestick. The third one is a bearish candlestick with a long real body. When it falls, it goes deep into the price range of the first bullish candlestick’s real body on the downside. These three K-line patterns constitute a typical evening doji K-line combination.
This pattern is a relatively strong signal that the trend is weakening, and the market will then enter a volatile downtrend. It is necessary to seize the opportunity to take profits or stop losses.
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