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Thursday, February 21, 2008

Doji? Kore Wa Nani?

I am not talking dirty, ha ha ha!
Doji is one of the Japanese Candlestick patterns. Let Investopia tell you the rest: A doji candlestick looks like a cross, inverted cross, or plus sign. Alone, doji are neutral patterns. StockChart.com gives more detailed readings on Doji... One of the examples:
After an advance or long white candlestick, a doji signals that buying pressure may be diminishing and the uptrend could be nearing an end. Whereas a security can decline simply from a lack of buyers, continued buying pressure is required to sustain an uptrend. Therefore, a doji may be more significant after an uptrend or long white candlestick. Even after the doji forms, further downside is required for bearish confirmation. This may come as a gap down, long black candlestick, or decline below the long white candlestick's open. After a long white candlestick and doji, traders should be on the alert for a potential evening doji star.
I am learning new things everyday.
(Just for your info., our chat-box guest ParisHilton loves candelsticks. She introduced me the Doji)

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Words borrowed from Dr. Alexander Elder:

Trading is so exciting that it often makes amateurs feel high ...Nobody can get high and make money at the same time.

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