Doji is a candle which is formed when the bar open and close prices are at the same levels or have several pips difference:
Examples of Doji
Once doji has appeared on the chart you must consider that it is a strong reversal signal.
Doji is important only on the markets where it appears rarely. 15 minutes charts are useless for analyzing this pattern as there are lots of them there.
If doji is formed at the high this is the strongest signal of all as at the bottom doji’s magical abilities to reverse the market may disappear. When doji appears after a tall white candle it is time for the bulls to keep a bright lookout as it is the most meaningful signal.
Rickshaw man and Gravestone Doji leave no chance for the upward momentum.
Once doji appears on the chart its open/close prices will be support/resistance levels.
Three Stars is a rare but significant reversal pattern. Three stars are formed by three doji, and the middle is a Doji star:
The Three Stars pattern
