CANDLESTICK ANALYSIS

CANDLESTICK ANALYSIS -PART 1 

5 TYPES OF DOJI CANDLESTICK PATTERN

What characterises a candlestick chart?
1. A candlestick chart is characterised by the body and shadows. 
2. The wide part is called the real body, and it shows the range of price movement between the opening and closing of the trading day. 
3. The protruding thin lines are called the shadows and they depict the low and high prices for the day. 
4. The upper shadow or line is often called the wick, while the lower is called the tail.
There are many kinds of candlestick patterns, and one of them is called the long-legged doji. The word doji in Japanese means a mistake or anomaly but in trading terminology, doji refers to a unique incident when open and close prices of a stock are the same. This is indicative of indecision in the market when neither bears nor bulls hold the reins. The long-legged doji candlestick pattern is one of the five doji candle patterns. The others are standard doji, dragonfly doji, gravestone doji and price doji.