High Position Doji + High Volume?
Recently, someone asked: "High volume with a large doji at a high position, what does this mean?"
In short: Be careful, this is a signal for a trend change, the main force is digging a pit for you!
First, let's look at the phenomenon:
Appears at a high position: Indicates that there has been a significant increase before, and the position is relatively high.
Huge volume: Indicates that trading is particularly active, with fierce battles on both the buying and selling sides.
Large doji: Long upper and lower shadows, with a very small body, nearly the same opening and closing price—typical of "moving for a day, returning to the starting point."
The underlying meaning is quite heart-wrenching:
This is a top signal, not a buying point!
Both bulls and bears are desperately trying to outmaneuver each other, but the closing price shows no movement, indicating a divergence of capital and a lack of upward momentum.
High volume + fluctuations, it is highly likely that the main force is unloading, while retail investors are taking over.
In a truly strong market, you won’t be given so much time to hesitate.
What happens next? Watch the next day!
If the next day’s volume breaks below the doji's lower shadow: basically confirms a "weakening," if it’s time to go, then go; if the main force has finished running, don't stand guard any longer.
If the next day shows low volume with a small increase or another doji: it's still in the process of changing hands, the direction hasn’t emerged, don’t rush to act, wait for clarity.
Operation suggestions:
For what you have: Reduce your position, securing profits is the real deal.
If you still want to buy: Hold on, don’t rush in at this critical moment to catch a falling knife.
Here’s a practical mantra for you:
High position with high volume doji,
The main force is washing out the market;
If the next day breaks the lower shadow,
Decisively reduce your position, don’t be soft-hearted!
What’s the next market movement? Unsure how to operate?
Strategies from the battle team are being published in real-time, follow along to layout your winning trades.
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