Doji Candlestick Pattern - Steem Alliance Community.

How are you all, I hope you all guys will well. by the grace of God, I am also well. Today I am introducing a series of candle stick patterns that will help the new traders to understand the concept of market behavior. in the post we start with Doji candlestick patterns that how we can predict the market with the help of doji candlestick and its different types.

Doji candlestick pattern is the single candle pattern that is used in technical analysis. Doji pattern is created when the opening and closing prices of an coin/token are very close to each other and have nonexistent body. Doji candlestick looks like the Plus sign shape. Doji has long wicks in both direction, buying and selling pressure are same at this stage.

Where the Doji candlestick created, we can not take any decision for taking any long or close position because Doji candlestick indicate that the seller and buyer are equal at that price position. the best technique is to wait and watch the market trend where the Doji candlestick created.

For decision making, Trader use the other technical strategy that based solely on the presence of a Doji candlestick, example. a Doji at a key support or resistance level, or after a prolonged trend, might carry more significance than a Doji that appears randomly within a range bound market.

Two types of Doji are used for market trend prediction.

• Dragonfly Doji
• Gravestone Doji

Dragonfly Doji:

Dragonfly Doji indicate the bullish market trend. how we can say that it is dragonfly doji candle. when the open, high, and close prices are the same with a long lower shadow then we will say that it is Dragonfly Doji. When the Dragonfly doji created then we can predict that buyers are stronger at that position, so it indicate the bullish trend.

Gravestone Doji:

It indicate the bearish market trend. When the Gravestone doji created then we can say that seller are stronger at that position, so it indicate the bearish trend. When we see a candle that have the open low and close prices are the same with a long upper shadow then we can say that it is Gravestone Doji.