Candlestick Pattern for Beginners
In this video, Rayer Teo explains the three types of doji, which are dragonfly doji, gravestone doji, and long leg doji in candlestick pattern for beginners.
Doji candlestick explained Rayer Teo
The Doji candlestick pattern occurs when the candle has the same open and closing price. As you can see, the open and close are at the same level, so you see a straight line on the chart. This is the high and low. One thing to notice is that a Doji has nobody on the candlestick pattern. Let’s examine three types of Doji candlestick patterns and how you can use them to find profitable trading setups.
Doji Candlestick Pattern #1:
We call the first one the Dragonfly Doji, right? Again, right, the close and the open are the same level, but this time around, with a Dragonfly Doji candle, the wick is lower, right. This means that lower prices are being rejected. This is a Dragonfly Doji, this portion over here shows rejection of lower prices.
The market opened here. Then it went all the way down. Eventually, the buyer stepped in and pushed the price all the way up higher and closed at the same level. A Dragonfly Doji can be tricked when the market is in an uptrend, right? The market is, for example, above the 50-period moving average. You know, it tends to bounce off of it repeatedly. Whenever the market returns to this moving average, this is an area of value. In this area, you could potentially look for a buy opportunity.
Doji Candlestick Pattern #2
Next, I want to discuss the Gravestone Doji candlestick pattern. This candle has the same open and close as the previous one, but this time it has a long upper wick. This means, then, that there has been a rejection of higher prices.
Higher prices have been rejected by the market. In essence, it looks like this. So we can see that the Gravestone Doji can serve as an entry trigger, depending on your goals in that trade. You can use the appropriate trade management or trading stop loss technique if you want to capture a swing or a trend.
Doji Candlestick Pattern #3
The third one I’d like to discuss is the Long-legged Doji. Right, so it looks like a normal, standard, Doji. It opens, closes, and is on the same level. But this time around, the upper and lower wicks are very long, right? In other words, the market is indecisive.
The picture looks something like this. The candle is like a regular Doji, but the highs and lows of the candle are very long, okay? This indicates that there is strong indecision in the market. Right, the first retest is usually the best, especially if the move is strong and nice. Usually, the level will hole in and reverse the hole. But if the market returns to the level repeatedly over a short period of time, there is a good chance that it will break up, so you should be trading the breakup of the heist.
Apply money management techniques.
– Antoroy
Doji trading strategy:
To identify bullish and bearish markets in trendlines, Doji trading strategy candlestick chart patterns are useful.
Spining top and doji:
Candlestick charts reveal quite a bit about market trends analysis, sentiment analysis, momentum analysis, and volatility analysis. The candlestick chart patterns are indicators of such actions and reactions in the market. Doji candles and spinning top candles are frequently seen as part of larger patterns, such as star formations. In general, doji and spinning tops indicate neutrality in prices, or that buying and selling pressures are, essentially, equal. However, there are differences between the two as well as how technical analysts interpret them.
Based on the length of the shadows, spinning top and doji candles resemble a cross or plus sign. In a Doji, the open and close prices are the same. This candle’s upper and lower shadows are determined by the high and low for the day. When it is gapped above a previous hollow candle, it signals a reversal of buying momentum. Dojis appear lower than filled candles and signal a reversal of the downtrend.
Spinning tops: spinning top candlestick
The tops of spinning machines are quite similar, but their bodies are much larger, and their open and close mechanisms are different. A spinning top always has long legs on either side, indicating a wide range of highs and lows. Spinning tops also indicate weakness in the current trend, but not necessarily a reversal. If either a Doji or spinning top is spotted, look to other indicators, such as Bollinger Bands, to determine whether they are indicative of trend neutrality or reversal. A spinning top candlestick can be used to identify a bearish market.
Gravestone Doji:
Gravestone Dojis are viewed as bearish reversal candlestick patterns that occur during peak periods of an uptrend. In candlestick chart patterns, the Gravestone Doji occurs when the open, low, and close are the same or close to the same price. This pattern is distinguished by the long upper shadow.
Fox Trader Pro
Introducing the revolutionary indicator “Fox Trader Pro” – for Forex and Binary Options!
Fox Trader Pro, which thousands of traders are using The product I have been waiting for is finally here! Think for Yourself: What factors do you consider when looking for a good trading instrument? Obviously, its reliability. Its accuracy and profitability. All three of these qualities are present in one wonderful indicator: Fox Trader Pro!
In addition, it has Adaptive TakeProfit technology and a smart informer that provides a wealth of useful information for successful trading.
The indicator works on both Forex and Binary Options. The indicator can be used on all timeframes and currency pairs.
Add comment