Candlestick Patterns Basics – cont’

Doji candlesticks

The result was essentially a draw as buyers and sellers not able to gain control.Lets look at the four basic of the Doji lines in the pictures below :

The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign. The word “Doji” refers to both the singular and plural form.When a doji forms on your chart, pay special attention to the preceding candlesticks.

If a doji forms after a series of candlesticks with long hollow bodies (like white marubozus), the doji signals that the buyers are becoming exhausted and weakening. In order for price to continue rising, more buyers are needed but there aren’t anymore! Sellers are licking their chops and are looking to come in and drive the price back down.

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