What are the different types of Doji candlesticks?

There are plenty of Doji patterns, including dragonfly Doji, gravestone Doji, and long-legged Doji. Doji candlestick is mainly used to indicate indecision since the high, low, open, and close in which these four prices are the same. Still, not all of these Doji variations are used the same way.

How do you identify a neutral doji candle?

Suppose the Doji candle you observe is a neutral Doji candlestick. The point of entry when you identify a neutral Doji in an uptrend would be the low point of the formation. It is generally a short position. In case it appears on a downtrend, the entry point for a long position should be at the breakout or high of the Doji candle.

What are the different types of Doji patterns?

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. The right arm of the cross denotes the closing price of the security.

What is a gravestone doji candle?

A gravestone doji candle is a pattern that technical stock traders use as a signal that a stock price may soon undergo a bearish reversal. This pattern forms when the open, low, and closing prices of an asset are close to each other and have a long upper shadow.