Few Types About Doji

By Sebastian Litrell

There are two kinds of standard Doji Stars: Evening Star and Morning Star.
An Evening Star is at above after the long candlestick body during an uptrend market; while for the Morning Star, it is at below after the long candlestick body during a downtrend market.

Doji Star:

A Doji star is likely a sign to show that the current trend is going to change to another opposite trend. So, it is considered as a reversal sign indicates the current trend is likely to be end. The Doji Morning Star somehow is a sign of lowest bottom while a Doji Evening Star is a sign of the highest top.

A trader should have waited for the chart pattern to be completed before he or she takes the next move. The chart's pattern only can be considered as a complete chart when a candlestick body occurs after the short Doji. Although Doji is a reversal sign, but it could not stands well on its own. The candlestick body occurs after the short Doji would help much in determine the market trend. When there is a red body occurs after the Doji, it indicates the trend is in downtrend and if the candlestick body after the Doji is green, then it shows that the bulls is taking over the control. So, there should be a gap before the candlestick body turns up.

A Doji is known as an 'abandoned baby' or 'island' as it is isolated from the main flow candlestick body patterns.

Double Doji

This formation is formed by two similar Doji that appears one after another. It can be considered as a common phenomena and it is more useful if compare with single Doji as double Doji show us more about the indecision market. So, with this double Doji, it can be strongly sure that there would be a breakout for the current trend.

Dragonfly Doji

A 'Dragonfly' Doji has a long lower shadow and a very tiny candlestick body (sometimes it does not have a candlestick body). It is formed when the open, close and high prices are at the same level. This formation is rarely to be found. The current market first opened at a high price, then dropped during the trading session (because selling is more than buying), and then finally closed at the same high level with the opened price (indicates the bulls have the strength to force the prices up again). This formation is a bullish signs which normally found at the bottom of a downtrend market.

Gravestone Doji

As we can assume from the name, a 'Gravestone' Doji is a threatening sign for traders. The 'Gravestone' Doji has a long upward shadow and a very tiny candlestick body (sometimes it does not have). It is formed when the open, close and lows price are at the same level. During the trading session, the price did go up but return back to the opening level at the close. So, this 'Gravestone' Doji is a bearish sign. It is threatening the traders especially it occurs at the uptrend.

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Litrell Sebastian
Professional Forex Trader -
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Article Source: http://EzineArticles.com/?expert=Sebastian_Litrell

The Evening Star doji candlestick pattern is fully described at StockMarketStudent.com