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Dojidragonfly

📊 The Doji Candle Pattern📍What is the Doji Candlestick Pattern? The Doji Candlestick Pattern refers to a chart pattern consisting of a single candle. This pattern appears when the opening and closing prices of a candle are nearly the same or identical, resulting in a small-bodied candle with upper and lower wicks resembling a "+". Different variations of Doji patterns exist, with unique names like the Long-legged Doji, Gravestone Doji, Dragonfly Doji, and Doji star candlestick pattern. Regardless of the type, all Doji patterns provide traders with four critical data points: the open, close, high, and low prices for the given period. Doji patterns can occur on any timeframe and in any market, making them the foundation of many trading strategies 🔹Long-legged Doji The Long-legged Doji pattern has an elongated upper and lower wick and a small body The Long-legged Doji can be interpreted in several ways and works best when viewed in context with price action. It is a potential price reversal signal in a defined up or downtrend. If it occurs in a flat market, it suggests further consolidation. 🔹Dragonfly Doji The Dragonfly Doji sets up when the candle’s open, close, and high is approximately the same. Visually, the Dragonfly looks like a “T,” as depicted in the image below. This formation suggests that heavy selling was present, but the market has rebounded. As a general rule, the Dragonfly is considered a reversal indicator. A retracement in price is expected when it occurs at the top of a bullish trend. 🔹Gravestone Doji The Gravestone Doji pattern is the polar opposite of the Dragonfly; it appears as an inverted “T” and signals that heavy buying has given way to selling. The Gravestone Doji is a reversal chart pattern that signals downward or upward pressure may be on the way. The Gravestone suggests that a reversal is possible when observed within a defined uptrend. Within a downtrend, bullish price action may be forthcoming. 🔸Reversals Doji candlesticks can be a great way to get in or out of the market in trending markets. The Gravestone and Dragonfly are ideal for reversal strategies as they indicate forthcoming upward and downward movements in price. 🔸Breakouts One of the lowest-risk ways to utilize Dojis in the FX market is to trade breakouts. A breakout is a sudden directional move in price. Dojis often precede breakouts, as they are a signal of indecisiveness. As soon as the market makes up its mind, a significant move may be in the offing. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
SPX - Just a "correction" so farThe correction in the markets last week may appear steep & violent, especially for some stocks. However, on the bigger scale of things, SPX is still looking like a "normal" correction (within a bull trend) so far. In fact, a few factors could be aligning for a possible bounce in the near term: 1.SPX closed a "dragon-fly" candlestick last Friday, signifying some buying towards the close of the session 2.A bullish divergence between price and RSI could be emerging 3.So far, the magnitude of the current retracement (CD) is similar to that of the previous retracement (AB), ie CD swing is the 100% fibonacci extension of AB, projected from point C. 4. The pullback to D is 50% fib retracement of the BC upswing (still within reasonable limits of a "correction") There is no real reason "panic" yet, unless we have SPX going below 4000 (worst case 3950) again for a start. Let's see how this week will play out. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
CME_MINI:ES1!
by Juliac
Advanced trading Guide: Doji Candlestick AnalysisDoji Candlestick Analysis pattern is among the misunderstood candlestick patterns. There are four types of Doji candlesticks. Each has a different meaning and most advanced traders can figure them out. Most books written will teach Doji as a representation of indecision in the markets. Looking at the length of Doji, you’ll be able to speculate the future market movement. In this post, you’ll learn how to read and analyze Doji candlestick pattern. What is Doji? Doji candlestick appears on the trading chart when the market opens and closes at the same price level. It simply means that the market is uncertain if the buyer or sellers are in control. But there is a variety of Doji with various meaning on each. For now, let us know what usual Doji looks like: Doji Candlestick Sample - FinanceBrokerage Doji is a simple candlestick pattern. But it differs when taken into context. It provides the traders the sense of how the market will move. For instance, when spotting a Doji in an uptrend. This simply means that the market is in equilibrium (temporarily). Upon enough rest, the market will move higher on the path with least resistance. Observe the sample graphic below: Sample Doji candlestick in an Uptrend - FinanceBrokerage Avoid this usual mistake: Majority of traders spot Doji Candlestick Analysis in an uptrend and decide to go reverse. That’s a really bad idea. Looking at the market, if a trend is going upward and been moving higher, why would it lose against a single pattern like Doji? Different types of Doji candlesticks Dragonfly Doji In fact Dragonfly Doji rarely occurs in which the price closes on the exact position it opened. Preferably, there is variation in having a small body with a long wick in the bottom. The meaning will be the same. The important point is being familiar with what it means. Dragonfly Doji usually appears if the opening and closing prices are at the same level with a long lower wick. Below is a sample of a bullish Doji: Dragonfly Doji Sample - FinanceBrokerage That shows that whenever the market opens, the sellers are going in and pushing the price lower. But it won’t take a long time before buyers take control of the market, pushing the price higher. How to trade with Dragonfly Doji? Support marks an area where possible buying may come in. Go long whenever the price comes to support area and creates a Dragonfly Doji. The exact scenario tells you that it rejected lower prices with a high possibility to reverse higher. Observe the sample chart below: Dragonfly Doji in a range market Chart Sample - FinanceBrokerage When it comes to trending market, the market would likely bounce off the moving average. But you may go long whenever the price pulls back toward a moving average forming a Dragonfly Doji. Observe the sample chart below. Dragonfly Doji in a trending market Chart Sample - FinanceBrokerage Gravestone Doji Gravestone Doji appears whenever the open and close are in the same amount, but with a long upper wick. Below is an example of a Gravestone Doji: Gravestone Sample - FinanceBrokerage This type of Doji shows that when the market opens, buyers come and push the price higher. But it won’t take long until sellers gain control and push the price lower. The market finally closes with the same price it opened. This is a sign of weakness because sellers are in control. How to trade with Gravestone Doji? Resistance area marks the part where possible selling pressure could come. Go short when the price gets close to resistance forming a Gravestone Doji. The scenario simply shows that the market rejected higher price and could reverse lower. Observe the sample chart below. Gravestone in Range Market Sample - FinanceBrokerageWhen it comes to a trending market, Gravestone Doji could make the market bounce off moving average. Go short whenever the price pulls back towards moving average forming a Gravestone Doji. Observe the sample chart below. Gravestone in a Trending Market Chart Sample - FinanceBrokerage Long Legged Doji Long Legged Doji appears whenever the open and close are in the same price, but with a long upper wick and lower wick. Below is an example of a Long Legged Doji. Long Legged Doji Sample - FinanceBrokerage This Doji pattern shows that the market is uncertain upon a huge expansion in volatility. This pattern rarely occurs but if it appears, expect volatility to die out for some time before it picks up again. There are two ways to trade in a Long Legged Doji. Let’s elaborate each. After huge expansion in volatility, the market will need to take a break before it continues. For a while, the market will be in the range to gain orders before breaking out. That means you can go long on the lows of the Long-Legged Doji. Observe the sample chart below. A Long-Legged Doji Sample on Chart - FinanceBrokerage Long Legged Doji Short the Highs on the First Test Sample Chart - FinanceBrokerage Based on the first sample above, whenever the price tests the high/lows a lot of times, it will likely break out. Look at the sample chart below. Long Legged Doji Went Into a Range - FinanceBrokerage Full illustrated article on Doji Candlestick Analysis
Education
by Financebroker
ZIL/BTC -> Novice Three Candle Bullish Reversal PredictionA Dragonfly Doji seems to be in the makings for ZIL/BTC. This bullish three candle reversal needs the next day's candle to confirm as bullish as well to prove the subsiding sell pressure. If confirmed as a reversal, first target would be ~381 sats. Next target would be ~430 sats met by resistance that has already been tested once so the rejection off of it (if any) won't bounce as hard as it did April 19-23. Invalidated with April 25 1D candle closing bearish.
Long
by Hrempe