Doji candles in technical analysis help identify potential trend reversals in price. They represent market indecision, hinting at impending trend changes
A Doji forms when open and close prices are nearly equal, appearing as a horizontal line on the chart. Bulls and bears are in balance, signifying uncertainty
Thin Doji candles indicate market uncertainty. This can imply an impending trend reversal. Traders watch for these candles closely
Traders use Doji candles as signals to enter or exit positions
Combining Doji candles with other indicators enhances analysis:1. Moving Averages: Crossovers with Doji provide confirmation.2. Bollinger Bands: A Doji touching or breaking a band can confirm reversal.3. Volume: Watch for volume changes alongside Doji
Different Types of Doji1. Classic Doji: Opening and closing prices are almost identical.2ï¸. Dragonfly Doji: Lower shadow is long, indicating bullish reversal.3. Gravestone Doji: Upper shadow is long, signaling bearish reversal