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Doji means neutral in japanese. when the demand and supply are balanced, the opening and closing price are the same, so the body of the candle is very thin, so it appears like a star. Doji appears rarely but very powerful and reliable indicators of trend reversal
If doji appears after a significant price fall with high volume– Morning star– indicating bullish trend reversal. So Long position can be created. Buy when the price goes above the highest price of doji day
If doji appears after a significant price rally with high volume–Evening star– indicating bearish trend reversal. So short position can be created. Sell when the price falls below the lowest price of doji day
Doji is simply called as an indecision in the market by both buyers and sellers. It may not have any body or have a smaller body in either red or green.It gives an early indication of any possible trend reversal.
DOJI is a Japanese term to denote the word neutral. This word is used in candle stick analysis and it can be visualized in the form of a star. when a buying and selling pressure from both side are resulting into neutral. Formation of DOJI is an reversal indicator to either a bullish trend or a bearing trend depending to position of the DOJI, If the DOJI is formed on the top right of a bearish candle then followed by a bullish candle means the bullish trend has started, this is a signal for buy.
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Open Sans’; font-size: 13px; line-height: 20px;”>Doji is Japanese word means neutral.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Open Sans’; font-size: 13px; line-height: 20px;”>Bullish Doji Morning star will appear after significant recent price fall and Bearish Doji or evening star will appear after recent price rise.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Open Sans’; font-size: 13px; line-height: 20px;”>Bullish doji or Morning star will be formed after 5 to 7 days of continuous fall. It will be in the form of star with no body and more volume on the star day. Then we can execute long position once the price crosses the head of the morning star with tail as stop loss.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Open Sans’; font-size: 13px; line-height: 20px;”>Bearish Doji or Ā Evening star will be formed after 5 to 7 days of continuous rise. When the star is formed bear is expected, the star will form with more volume on star day. We can execute short position once the price falls below the stars tail with head as stop loss.</p>Doji means neutral in japanese. when the demand and supply are balanced, the opening and closing price are the same, so the body of the candle is very thin, so it appears like a star. Doji appears rarely but very powerful and reliable indicators of trend reversal
If doji appears after a significant price fall with high volumeā Morning starā indicating bullish trend reversal. So Long position can be created. Buy when the price goes above the highest price of doji day
If doji appears after a significant price rally with high volumeāEvening starā indicating bearish trend reversal. So short position can be created. Sell when the price falls below the lowest price of doji day
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