What is Doji Candlestick Pattern

Doji is a very important of single candlestick pattern. This pattern is not give confirmation of Bullish market or not give confirmation of bearish market, but Doji Pattern work as a speed break.


Benefits of Doji


Doji Candlestick Pattern and Spinning TOP Candlestick Pattern this both Single Candlestick Pattern. This both candlestick pattern is show hesitantance of market. So that’s why we said  Doji is not given proper signal in market what happen in future, but Doji Candlestick Pattern given warning to us. After Doji Candlestick Pattern market is either Bullish or Bearish trend, so before we take trade we keep safety with trade.


How Doji Candlestick Made


Doji Candlestick made when open price and closing price are both same and equal of anyone script, but this script High Price and Low price between large distance. If more liquidity stock then open price and close price are same or minor difference like .5% of price, so this is work as a Doji Candlestick Pattern.


How to Identify Doji Candlestick Pattern

If you confuse how we identify this candlestick pattern is doji pattern or other types of pattern, so this time follow below points, to easy identify doji candlestick pattern.

  1. Before Doji Candlestick Pattern made, not important what is past market trend. 
  2. Doji Candlestick pattern not have body or minor body because this doji pattern made when open price and close price both are same or equal. It’s have long Upper Shadow and long lower shadow.
  3. Not important Doji Pattern color or not important market trend.



Types of Doji Candlestick Pattern



  1. Gravestone Doji
  2. Dragonfly Doji
  3. Long-Legged Doji
  4. Four Price Doji


1. Gravestone Doji


In Gravestone Doji Pattern made open price and close price both are same, but it’s have long upper shadow but not have lower shadow. So this type Doji Patter give us signal of market reversal. If this Doji Pattern are made in Top of Bullish chart then give signal market is bearish trend in future, but if those made in Bearish Chart then it’s give signal now market bullish in future.

Gravestone Doji candlestick


2.  Dragonfly Doji
   
      In Dragonfly Doji Pattern made open price and close price both are same, but it’s have long lower shadow but not have upper shadow. If you see Dragonfly Doji in Bearish market then now bearish trend time is over now bullish trend in future.

Dragonfly Doji Candlestick


     
     3. Long-Legged Doji

      In Long Legged Doji have open price and closing price both are same also upper shadow and lower shadow both are same or equal. So Long Legged Doji Pattern made in center of Chart or marker trend. Long Legged Doji Candlestick Pattern is given signal as market is hesitantance. SO this time be carful for take trend when market is hesitantance.

Long-Legged Doji Candlestick


    
    
      4. Four Price Doji

Four Price Doji made when anyone script in open price, closing price, low price and high price are same or equal, so that’s why called Four Price Doji Candle Pattern. Four Price Doji not important in market in trend and trader not take trade on Four Price Doji Candle Stick Pattern.

Four Price Doji Candlestick


How Doji Work in Market?

Now we discus Doji Candlestick Pattern how work in market.

     A.   Doji work in Bullish Market
             
      If Doji Candlestick pattern made in Bullish market then it’s have two influence. First is after few correction it continue bullish trend market and second one Bullish trend is over now it’s come in bearish trend.
  

     B. Doji work in Bearish Market

      If Doji Candlestick pattern made in Bearish Market then it’s have two influence. First is after few correction it continue bearish trend and second one Bearish trend is now over, it’s now come in Bullish trend.

     C.   Doji work in Sideways Trend
  
      After Doji Candlestick Pattern mat be do few correction or market is go in sideways market trend. Doji Candlestick pattern is speed braker, so stop for take trade until not confirmation market trend.


How we take trade and book profit on Doji Candlestick Pattern?

If you want to take trade on Doji Candlestick pattern then when take trade and when book profit, so follow some below points to take easy trade.

  1. If you see Doji Pattern in Bullish trend market then Doji pattern’s before last one candle low price is our entry price and set stop loss price is Doji candlestick high price. After you taken trade not book profit until not signal for other trade.
  2. If you see Doji Pattern in Bearish trend market then Doji pattern’s before last one candle high is our entry price and set stop loss price is Doji Candlestick low price. After you taken trade not book profit or continue existing trade until not signal for other trade.
  3. You not want to take trade in sideways market, because after Doji pattern or sideways market not confirm market price is go bullish trend or bearish trend, so my advice in not take trade in sideways market.


After you read this post, have you any suggestion or feedback then please give me in comment.




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