Part 4 is also the last part in the series on basic candlesticks. In this section, Blackmantrader will introduce you to the Doji candlestick, which represents market hesitation. Let’s find out how this type of candlestick generates market signals
BASIC CANDLESTICK PATTERN: DOJI CANDLESTICK
Describe:
Without a candlestick, the closing price is equal to the opening price
Price action:
Expresses hesitation in the market of both buyers and sellers.
Advice:
If it appears after a series of candlesticks, the buying pressure may decrease, if it appears after a series of bearish candlesticks, the pressing pressure may decrease
BASIC CANDLESTICK PATTERN: QUAD DOJI CANDLESTICK
Describe:
There are no candlesticks and shadows, just a horizontal line, the highest price, lowest price, false opening and closing price are all equal
Price action:
Often occurs at periods of illiquidity
Advice:
Do not trade with a quad Doji candlestick because there is no information about the market, neither buyers nor sellers have made any upward moves or the market liquidity is very poor.
BASIC CANDLESTICK PATTERN: LONG-LEGGED DOJI CANDLESTICK
Describe:
There is no candlestick body or extremely small body, no matter the color, the shadow is very long on 2 sides
Price action:
Appears when the price range during the day is very large but the candlestick closes very close to the opening price
Advice:
Note the location of the candlestick’s appearance. This pattern will be especially important when appearing at the top of the market
BASIC CANDLESTICK PATTERN: UMBRELLA CANDLESTICK
Describe:
Also called dragonfly candlesticks (Dragonfly), there is no upper body and shadow. The lower shadow is very long.
Price action:
It showed that sellers prevailed and the price was pushed very deep downwards but the buyers flipped the truss and closed the candlestick very well from the lowest price.
Advice:
Depending on where it appears, it may indicate a bullish reversal in a downtrend or at a support level or may signal a bearish reversal in an uptrend or at a resistance level
BASIC CANDLESTICK PATTERN: INVERTED PARACHUTE CANDLESTICK
Describe:
Also called a tombstone candle (Gravestone), without the body and the lower shadow, the shadow is very long.
Price action:
Showing that the buyers were dominant, the price was pushed upwards but the sellers flipped the truss and closed the candlestick very far from the highest price.
Advice:
Depending on where it appears, it may signal a bullish reversal in a downtrend or at a support level or may signal a bearish reversal in an uptrend or at a resistance level
