The Power of Doji
A Doji is created when the open and close for a price are virtually the same. Doji tend to look like a cross or plus sign and have small or nonexistent bodies. From an auction theory perspective, Doji represent indecision on the side of both buyers and sellers. Everyone is equally matched, so the price goes nowhere; buyers and sellers are in a standoff.
When it comes in a downtrend it act as a reversal pattern so we know that the bears power is weak, and bulls start to take control thus the price will go up and the trend will be up , when it comes in an uptrend the bull power is weak , bears starts to take control and price will eventually go down . But in technical analysis you cant enter a trade only from one sign so you should know you Support and Resistance area, draw your trend lines, use some indicators, and when you see the Doji know you know its the perfect time to execute the trade.
When it comes in a downtrend it act as a reversal pattern so we know that the bears power is weak, and bulls start to take control thus the price will go up and the trend will be up , when it comes in an uptrend the bull power is weak , bears starts to take control and price will eventually go down . But in technical analysis you cant enter a trade only from one sign so you should know you Support and Resistance area, draw your trend lines, use some indicators, and when you see the Doji know you know its the perfect time to execute the trade.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.