Doji Candle: Definition, Features and Meaning in Forex Trading
Doji candle is a type of candlestick pattern used in technical analysis, offering traders valuable insights into market sentiment and potential reversals. With its small body and long shadows, the Doji candle suggests a period of market indecision, making it a crucial signal for potential reversals. This unique candlestick can provide critical insights into market indecision and potential reversals. In this article, we will explore the Doji candle definition, its key features, and its meaning in Forex trading. What is a Doji Candle? A Doji candle is a type of candlestick pattern that forms when the opening and closing prices of a currency pair are nearly identical or very close to each other. This results in a candlestick with a small body and longer shadows on both the upper and lower parts of the candlestick. The Doji’s small body indicates that the market is in a state of indecision, with neither buyers or sellers able to gain control over the price action during ...