21
THE CANDLESTICK TRADING BIBLE
The chart above shows how the market
changed direction after the
formation of the Doji candlestick.
The market was trending up, that means that buyers were in control
of the market.
The formation of the Doji candlestick indicates
that buyers are unable
to keep price higher, and sellers push prices back to the opening price.
This is a clear indication that a trend reversal is likely to happen.
Remember always that a Doji indicates equality and indecision in the
market, you will often find it during periods of resting after big moves
higher or lower.
When it is found at the bottom or at the top of a trend, it is considered
as a sign that a prior trend is losing its strengths.
22
THE CANDLESTICK TRADING BIBLE
So if you are already riding that trend it’s time to take profits, it can
also be used as an entry signal if it is combined with other technical
analysis
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