Dow formed a 'Doji' on Friday. Doji in candlestick indicates indecision - market ends where it began. Doji can be found at the turning points at market tops or market bottoms but its presence does not necessary mean that the market is turning, confirmation candlesticks are needed over the next two trading sessions. A breakout following a Doji is going to be powerful but a red candlestick after a Doji will signal a turning point. It can go either way but technical indicators at high levels currently are in favour of a turning point.
Saturday, April 18, 2009
It is a Doji
Dow formed a 'Doji' on Friday. Doji in candlestick indicates indecision - market ends where it began. Doji can be found at the turning points at market tops or market bottoms but its presence does not necessary mean that the market is turning, confirmation candlesticks are needed over the next two trading sessions. A breakout following a Doji is going to be powerful but a red candlestick after a Doji will signal a turning point. It can go either way but technical indicators at high levels currently are in favour of a turning point.
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