The DOJI Candle

Doji Candle indicates indecision. When the stocks are Oversold or Overbought this candle gives a significant indication. Basically when market goes up it signals the trader for lock the profit and when market goes down it also signals the trader.

Criteria for the Valid Doji signal :

* The price level of the Open and the close of the stock must be almost the same.

*An upper shadow or a lower shadow or both can be there.

Types of Doji Candle:

1. Gravestone Doji signal.

2. Dragonfly Doji signal.

3. Spinning Top

1. Gravestone Doji signal:
When the particular stock open at a price and move up during the time frame but closes right where its started. That kind of a candle formation called Gravestone Doji. Here how its look like..

2. Dragonfly Doji signal :
When the particular stock open at a price and move down during the time frame but closes right where its started. That kind of a candle formation called Dragonfly Doji. Here how its look like..

3. Spinning Top :
A Small body Candle which usually comes after big candle . And its indicate that trend (whichever it may be a Buy/Sell trend) is losing its strength. It does not necessarily mean that trend is going to reverse. It only indicate the weakness of the trend. Here how its look like..

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