A doji is identified when the opening and closing are equal or practically equal
(a classic doji is one whose shadows are not too long and equal)
There are several types of families of the dojis which I will be publishing in the next blogs, in this we will only talk about the classic doji.
it is said that a doji is a situation of market indecision, a balance of forces, so the Japanese say, a tie between the bulls and the bearish.
if a doji appears in a side market does not have any transcendence, and will not matter but if it appears in a market with pronounced trend and in its mature phase is when we pay close attention, if for example in a pronounced uptrend behind a white candle appeared a doji could be warning us that the market trend could be running out, if it were in a bearish trend and after a black candle appeared a doji this would indicate that the bearish trend is running out.
It is very important, you should not use a doji to issue operations you should always wait for a candle confirming the change of trend with another candle the next day, since a doji could appear in the middle of a trend or perfectly the market can do a stop along the way with if training to then follow its course.
I a reliable doji appears in the support or a resistance, since they are more effective to make a decision after the corresponding confirmation, a doji is reliable when it appears in a resistance in case a trend is bullish or in a bearish trend in a support.
We will continue to publish sailing patterns.