Let’s continue the forlorn candlestick series education after three previous articles, Introduction of Candlestick, Shadow and Marubozu. At this time we will introduce with the name Doji. Do you know Doji? Sorry, this is not an Indonesian. This is the designation for candles that have the same level of Open Level and Close Level.
True, Doji is a one-candle pattern that does not have a real body or a very-very thin body. Accompanied with the same long shadow it will form a Perfect Doji. But there are also Doji with varying shadow length. The meaning of the appearance of Doji itself is actually a neutral candle. The power of the Buyer and the Seller that prints the high and low levels should eventually be closed at (close) the open candle level (Level Close = Level Open).
There are four types or variations of the Doji candle pattern. Namely, Doji (perfect), Long-Legged Doji, Gravestone Doji and Dragonfly Doji. There is also one more doji type that is Four Price Doji, but the latter is only found when out of market (outside market opening hours).
Long Legged Doji
For the Doji (perfect) candle pattern we have discussed above and the difference with long legged doji is only the shadow length that is formed. Long legged doji does not have to be the same length between upper shadow and lower shadow it.
Is a doji candlestick pattern with a long lower shadow and no upper shadow. This means that open, high and close levels are at the same price. If we look at the sequence of this candle pattern, the open price drops directly due to selling pressure to form low but eventually pushed up and closed at the same level as the open level.
This is the opposite of dragonfly doji. Open, low and close levels are at the same level. Sequence of this candle pattern is the direct open price rises due to the action of buying to form high but eventually fall back to close at the same level with open level.
Well, this candle pattern usually appears when liquidity declines or the market is closed. Koq can market caps appear prices? Yes, this price usually appears in the futures contract when the closing bell investors make an order to be placed in the queue.
Although the pattern of doji candle is said to be neutral pattern (buyer and seller power is same as big) but for the two candle pattern followed by the appearance of doji this can give reversal indication.