Bullish Doji |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bullish
Prior Trend of Candlesticks: Bearish
Reliability of Candlesticks : Confirmation Required
Confirmation of Candlesticks: Suggested
Candlestick Patterns Key Reference |
DESCRIPTION
Bullish Doji pattern is a sign of conflict between the bulls and the bears which results in a small range and ended with opening price and closing price unchanged.
The Doji pattern is a reliable signal to the end of a trend.
A Doji at the end of Consolidation period normally suggest the end of consolidation and the trend may happen soon.
PATTERN RECOGNITION
1. Bullish Doji pattern can be identified by downtrend.
2. Refering to above diagram, we will firstly see a long bearish candlestick.
3. Then we will see a doji which gap below and ended with opening price and closing price unchanged.
EXPLAINATION
The Bullish Doji pattern is a sign of trend reversal.
As reflected on the second doji candlestick, a downtrend ends with opening price and closing price unchanged. Most likely that a consolidation will follow.
The Consolidation Patterns imply that the trend may have ended and may go sideways. There is a possibility of a reversal but would require confirmation in the next session.
POINT TO NOTE
The Doji normally signal that the market is uncertain about the continued momentum of a trend.
The Bullish Doji is a reliable pattern which indicate that a consolidation will follow as the market test a new low before reversing the trend.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
