Doji-Star
Doji-star is an indicator that predicts the upcoming reversal of the current trend at a certain point in time. The traders and investors look at it as a point of indecision and a reversal trend. It can determine the trend directions. KEEV makes the process of using Doji-star candles super easy for users.
In This Article
You will learn,
What is Doji-star?
How To Analyze a Chart Using Doji-star?
How To Use Doji-star on KEEV
Category
Trend
Type
Lagging
What is Doji-star?
Doji-star is a tri-candle pattern formed due to a very high uptrend or downtrend in the market. It is an extensively used technical chart indicator depicting the reversal of upcoming trends in the market.
The doji-star pattern forms when the opening and closing prices are the same or nearby.
You can use these benchmarks to identify the doji-star with ease.
When the opening and closing prices are the same.
When the candle is cross, inverted cross or plus sign.
Even when the length of the upper and lower wick is not equal.
How To Analyze the Chart Using Doji-star?
In the above chart, you can see that there are three candles are highlighted in a box,
Out of these, the second candle is a Doji-star with a “+” shape.
The horizontal line in the Doji-star candle represents the open and close prices that occurred at the same level. The vertical line represents the time frame.
A Doji-star indicates that the price has reached its opening price by the end of the session.
The price flow during the day is influenced equally by both buyers and sellers.
In this case, both buyers and sellers can not dominate the market. Thus creates a neutral effect on the prices that leads to indecision.
And, at this moment, the Doji signals a reversal in the ongoing trend.
In an uptrend, the Doji is normally considered significant, since it signals that buyers are losing confidence.
In a downtrend, the Doji is normally considered significant, since it signals that sellers are losing confidence.
When the opening and closing prices are the same.
When the candle is cross, inverted cross or plus sign.
Even when the length of the upper and lower wick is not equal.
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