What is a Doji candlestick? A Doji represents indecision between the bulls and the bears! What is a Doji candlestick? It is one of the most prolific candlestick reversal signals. The Doji rule – a price will usually move in the direction of how they open after a Doji. Especially if it occurs in the overbought or oversold condition. Today the indexes form Doji’s at observable resistance levels. The Dow formed a Doji/Harami at the 50 day moving average area. The NASDAQ formed a Doji at the 50 day moving average. The S&P 500 formed a Doji at the 200 day moving average. This makes trend analysis very simple. The Doji rule says if the market starts trading lower after today’s Doji’s, a pullback/downtrend is extremely likely. This would also illustrate the fact that the moving average resistance levels were acting as resistance. Knowing what should result after candlestick signals provides a much more accurate trading platform for the candlestick investor. The Doji, as well as the other 12 major signals, indicate when it is time to buy and when it is time to sell. This is nothing more than the graphics of what is occurring in investor sentiment. Join us this Saturday and Sunday, March 26 and 27th for a full 2-day comprehensive training on what the candlestick signals and patterns illustrate is occurring in investor sentiment. Learn to recognize and understand what is occurring at strong candlestick reversal levels. This will benefit your trading for the rest of your life.
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Good Investing,
Stephen Bigalow
