Types of Doji
This indicates a strong battle between
the "bulls" and the "bears" like dragging the price with
a strong resistance all the way to where they wanted but lost control to the
opposing force. A long-legged doji shows that the market traded at a wide range
for a specific period. It is characterized by long twin shadows above and below
This simply states that the bulls
lost their shirt in battle, somehow, buyers dominated most of the session but
caught off guard by sellers suddenly resurfacing pushing the price to where
it opened. Since there are no lower shadows or wicks, buyers still supported
the price indicating that the sell pressure isn't enough to break the price
level. Gravestone Doji is formed when the price traded higher but ended the
period back down near or on its open price.
This is the reverse of the Gravestone
Doji where sellers were able to drag the price down but a sudden surge in buy
orders weakened their grip. This indicator shows that the "bulls"
are building up force and starts applying pressure upwards, a very long bottom
shadow Dragonfly Doji can be interpreted as a bullish signal, due to the fact
that the price has been dragged all the way down, but still managed to re-surface
back to its opening price, only a very strong surge in buy volume can generate
this kind of movement.
Four price Doji
This Doji indicates extreme balance
between buyers and sellers resulting in a stalemate in price. The Doji lacks
both lower or upper shadow since the price never moved the entire session.