Doji - Reversal

Dynamic Doji - Reversal clear trend signal

The Doji - Reversal is one of the most revealing signals in Candlestick trading.
It clearly shows that the bulls and bears are in equilibrium, a state of indecision.
The Doji - Reversal, appearing at the end of an extended trend, has significant implications.
The trend may be ending. Just this fact alone creates a multitude of investment programs that produce inordinate profits.
What is the best method for making big trading profits? Knowing the direction of the trading entity and the strength of that move, Candlestick analysis of continuous trading strategy. Candlestick formations reveal high probability turns profitable. Hundreds of years of investment refinement proved that point.


Candlestick analysis involves approximately 50 to 60 Candlestick signals. However, dozens of signals, is considered the major signals, will produce most of the trend reversals. Recognition and understanding of psychology, who formed these large signals will provide completely new information to investors in understanding optimal times to buy and sell. Japanese rice traders have realized that prices move based on fundamentals, they move based on the perception of investors on those grounds. Doji - Reversal signal is one of the most dominant reversal indicators. It is very efficient in all time frames, whether by one minute, five minutes or fifteen minutes for the chart trading day or daily, weekly and monthly charts for the swing trader and long-term investor.

The Japanese say that whenever it appears Doji - Reversal, always paying attention. A well-founded rule of Candlestick followers is that when a Doji - Reversal appears at the beginning of this trend, overbought area, sell immediately. Conversely, Doji - Reversal seen at the bottom of an extended downtrend requires buying signals the next day to confirm the reversal. Otherwise, the weight of the market can take the trend lower.

Doji - Reversal signal is composed of a candle. It is formed when they open and close occur at the same level or near the same level in a specific timeframe. The Candlestick charting, this essentially creates a "cross" formation. As the following illustration shows, the horizontal line represents the open and close occur at the same level. The vertical line represents the total number of trading at the time.

Doji - Reversal Star

After seeing a Doji - Reversal in overbought or oversold condition, an extremely high probability reversal situation becomes apparent. Overbought or oversold conditions can be defined using other indicators such as stochastics, When a Doji appears, it is showing that there is indecision now occurring in the extreme part of the trend. This indecision can be portrayed in several variations of the Doji - Reversal.

The long-legged Doji is composed of long upper and lower shadows. During the period, the price moved down dramatically before it closes at or near the opening price. This reflects the great indecision that exists between the bulls and bears.