Doji Candle Stick full series : https://smartstockadda.com/category/candle-stick-eg/
How to identify a Doji candlestick pattern?
doji candle
Suppose a stock opens, goes up, then comes down, and finally closes at the open price. Such a candlestick pattern is called a Doji.
- The Doji candlestick pattern is considered a reliable pattern in the market.
- In a Doji candlestick pattern, the opening and closing prices are the same, meaning there is no body in the candle.
- This indicates indecision in the market, where both buyers and sellers are unsure about the direction it will take—whether it will move up or down.
- If there were a body in the candle, it wouldn’t be counted as a Doji pattern.
- The Doji candlestick pattern signals a potential market reversal, which can help me understand what might happen in the market. For confirmation, we can use technical analysis, looking at volume and candlestick patterns to determine what the market might do next.
How many types of Doji candles are there?
There are four types of Doji candlestick patterns:
- Standard Doji
- Gravestone Doji
- Long-legged Doji
- Dragonfly Doji
1. STANDARD DOJI :
In a standard doji candle, the open and close are within the range of the wick or shadow. In this pattern, both buyers and sellers are equal, meaning it’s hard to predict whether the market will go up, down, or stay within this range.
For detailed information about the standard doji candlestick, click here https://smartstockadda.com/standard-doji-candle-pattern-in-hindi/
2. GRAVESTONE DOJI :
If the open and close points in a doji candle are near the low, then we call it a Gravestone Doji. Typically, this forms in bullish trades indicating a possibility of a bearish market. Learn more about Gravestone Doji here: Gravestone Doji Candlestick
3 . LONG-LEGGED DOJI :
long legged doji candle stick identify
If in a doji, the upper wick or shadow and the lower wick or shadow are long, and the open-close price is in between, then we call it a Long-Legged Doji. This indicates market volatility. Learn more about Long-Legged Doji Candlestick here: Long-Legged Doji Candlestick Pattern
4. DRAGONFLY DOJI :
When in a doji, the open and close prices are the same and near the high price, then we call this kind of doji a Dragonfly Doji. This typically forms in downtrends and signals a possibility of a bullish trade. Learn more about Dragonfly Doji Candle here: Dragonfly Doji Candlestick Pattern
