The doji represents indecision in the market. A forex elliott wave fibonacci retracement is not as significant if the market is not clearly trending, as non-trending markets are inherently indicative of indecision.
If the doji forms in an uptrend or downtrend, this is normally seen as significant, as it is a signal that the buyers are losing conviction when formed in an uptrend and a signal that sellers are losing conviction if seen in a downtrend. Neutral: Dojis form when the opening and closing prices are virtually equal. Long-Legged: This doji reflects a great amount of indecision about the future direction of the underlying asset. Gravestone: The long upper shadow suggests that the direction of the trend may be nearing a major turning point. Dragonfly: The long lower shadow suggests that the direction of the trend may be nearing a major turning point.
A doji is a key trend reversal indicator. This is particularly true when there is a high trading volume following an extended move in either direction. 4-Price Doji is a horizontal line indicating that high, low, open and close were equal. The Trading Book: A Complete Solution to Mastering Technical Systems and Trading Psychology. This finance-related article is a stub. You can help Wikipedia by expanding it. This page was last edited on 21 May 2018, at 20:05.
As an Elliott wave trader I am constantly on the lookout for trend changes and the big opportunities they bring. In every market cycle extremes of bullishness or bearishness overcome the crowd, and every last person piles into the same trade right before the trend changes! Elliott wave principle tells me to start looking for the exit, To avoid getting trampled by the crowd, when the trend change appears! Elliott wave analysis, is a lens to view the market in an objective way. The wave principle views the price movements of the market as being part of an overarching pattern. There are three main descriptive features of the wave principle.