What does a Doji Candlestick mean?

The doji is a transitional candlestick formation, signifying equality or indecision between bulls and bears. A doji is quite often found at the bottom and top of trends and thus is considered as a sign of possible reversal of price direction, but the doji can be viewed as a continuation pattern as well. How Do You Read a Doji Candlestick?

What are doji patterns on a candlestick chart?

The candlestick chart can form different Doji patterns depending on the price trends. The four main types of Doji patterns commonly seen are – common, gravestone, long-legged, and dragonfly Doji. Doji looks like a plus sign, with each end denoting market positions. The left arm of the cross represents the opening price of a security.

What is the most powerful doji candlestick pattern?

The most powerful Doji Candlestick pattern is the Dragonfly Doji. This pattern forms when the open, close, and high prices are the same, and the low price is significantly lower than the opening price. The resulting shape looks like a T with a long lower shadow and no upper shadow.