doji candle The first Doji candle
Any candle whose open and close points coincide is called a Doji .
The most famous and important Doji pattern is the tall Doji.
This pattern is a sign of indecision in the market. Buyers and sellers are skeptical and can not move the market in a certain direction. Contradictory news entered into it.
But eventually it returned to its original point, and all the contradictory news completely nullified each other.
Therefore, the reliable information of the shareholders has not changed significantly during the day.
Each of the candle patterns tries to predict the next market movements as much as possible.
The tall Doji model predicts that the market will probably be in place for the next few candlesticks.
Markets that do not have a specific direction of movement are called volatile markets.
Despite having the same name, they have different types of Dodge patterns, but their message is completely different.
If the Doji tombstone pattern appears on the ceilings, it means a downward signal indicating a resistance level.
While the Dodge Dragonfly pattern appears on the floor, it will be a hammer-like upward signal, indicating an increase in the power of buyers compared to sellers.
The Dodge cross pattern is usually not meant alone and is classified next to the previous candelabras in the group of multi-candle patterns, which we will discuss below.
In the image below, you can see a collection of Dodge patterns formed on the global gold price chart.
These patterns were created due to the uncertainty of the market following the release of a positive news in the market when traders had doubts about the accuracy of the news and expressed this doubt in the form of various types of Doji pattern.
