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Fiji is a Japanese term for neutral. It once again denotes a trend reversal. A good doji is very powerful and it can give returns upto twice the risk taken.
Conditions:
1. The recent trend should be bullish or bearish. Let’s say it’s bearish for our example.
2. Today the body formed should be neutral. i.e. The opening and closing should be equivalent.
3. This doji should be formed with a high volume traded.
4. Now a long position can be created once the price crosses the doji high. The previous day’s low is the stop loss.
5. It can be sold at nearly twice the risk taken.
Doji means neutral in japanese.
It helps us in understanding change in current trend. It means the open and close of the market are almost at the same level, with fairly equivalent high and low.
Doji requires a significant rally of price rise or fall with high volume to indicate bearish or bullish trend reversal respectively.
It is said that identifying DOJI is like identifying money bag.
Assuming the price is falling down significantly; lot of selling taking place and one fine day the selling stops and may be due to fresh buying
the price remains nuetral and stays in the same position in spite of huge volume in trade. this is called DOJI. A thin body, star shaped candle.
this is clear bullish trend and we can opt for LONG. We can opt short when doji appears when the price is assumed to be increasing.
Dojis form when a security’s open and close are virtually equal.A doji candlestick looks like a cross, inverted cross or plus sign. Alone, doji are neutral patterns. A good doji is very powerful and it can give returns upto twice the risk taken.
- The recent trend should be bullish or bearish.
- Today the body formed should be neutral.The opening and closing should be equivalent.
- This doji should be formed with a high volume traded.
- Now a long position can be created once the price crosses the doji high. The previous day’s low is the stop loss.
- It can be sold at nearly twice the risk taken.
Doji is neutral. Opening and closing should be equivalent. Good Doji appears rarely, but very powerful. Thin shaped, cross shaped or that looks like plus sign.
If appears after a significant rise / fall. Doji with high volume indicates trend reversal. Doji followed by a sideways movement may not be considered.
Long position is considered when price rises above Doji high and stop loss when goes below Doji low. Target is twice of the risk taken
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