Is the Doji candle #CreatorPad ?
A Doji candle forms when:
The opening price is approximately equal to the closing price.
It has an upper and lower shadow (sometimes long, sometimes short).
Its shape resembles a plus sign (+) or a cross.
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🔸 Types of Doji Candles:
type shape what does it mean?
Classic Doji + Neutral, market indecision between buying and selling.
Long-legged Doji + (with long shadows) Significant price volatility, unclear direction.
Dragonfly Doji Inverted T Strong buying pressure after a pullback, may indicate a bullish reversal.
Gravestone Doji T Strong selling pressure after a rise, may indicate a bearish reversal.
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🔹 Implications of the Doji Candle in Technical Analysis:
In an uptrend:
The appearance of the Doji may indicate that buyers are starting to lose control, and the likelihood of a bearish reversal.
In a downtrend:
The appearance of the Doji may indicate that sellers are weakening, and the likelihood of a bullish reversal.