What is Doji Pattern?

Doji candlesticks look like a cross, inverted cross or plus sign. Alone, doji are neutral patterns that are also featured in a number of important patterns. A doji candlestick forms when a security's open and close are virtually equal for the given time period and generally signals a reversal pattern for technical analysts


BREAKING DOWN 'Doji'

There are two main forms of technical analysis: fundamental and technical. Fundamental analysts concentrate on measures that have to do with business performance such as sales and net income. Technical analysts, on the other hand, concentrate on patterns in the stock price. If the stock price is going up, it might be a sign that prices will continue to go higher and vice versa.
Technical analysts believe that all known information about the stock is reflected in the price, which is to say price is efficient. Still, past price performance has nothing to do with future price performance, and the actual price of a stock may have nothing to with its real or intrinsic value. Therefore, technical analysts use tools to help sift through the noise to find the highest probability trades. One tool that was developed by a Japanese rice trader named Homma from the town of Sakatar in the 17th century, and it was made popular by Charles Dow in the 1900s: the candlestick chart.

Comments

Popular posts from this blog

Looking to invest in Mutual Funds? Here's how to get your KYC done!

Market Analysis 25/07/2017

Major Tax Updates As On 20th July 2017