Doji Candlestick Pattern In Forex Trading

Candlestick charts are one of the most common types of technical analysis used when trading Forex, as they allow traders to quickly comprehend price information using only a few price bars. 

The Doji candlestick, also known as the Doji star, is a distinctive candle pattern that shows hesitation and weakening momentum of a trend in the market. When a Forex currency pair opens and closes at the same level, a Doji is formed. 

What Is the Doji Candlestick Pattern?

Types of Candlestick Pattern 

Doji candlesticks come in various forms, but the majority of them resemble a cross or a plus sign. 

Common Doji

The common Doji is the most standard type of Doji candle. The body of this candlestick is small, and it casts shadows.  

Long-Legged Doji

The vertical lines above and below the horizontal line are simply extended farther in the Long-Legged Doji. This means that the price action of the candle moved substantially up and down during the span of the candle but that it closed at about the same level as it opened. 

Dragonfly Doji

The Dragonfly Doji can emerge at the peak or bottom of a trend and indicates the possibility of a shift in direction. Prices did not increase over the beginning price since there is no line above the horizontal bar, forming a ‘T.’  

Gravestone Doji

In comparison to the Dragonfly Doji, the Gravestone Doji is the polar opposite. When price action opens and closes at the lower end of the trading range, this pattern appears. 

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