Doji

Ideally, doji is a candlestick pattern that is formed by the opening price is in the same position or at least nearly equal to the closing price. Doji can has various combinations of shadow patterns, either short upper shadow and long lower shadow, long upper shadow and no / very short lower shadow, no / very short upper shadow and no / very short lower shadow and etc.

Although the shape of the doji is very diverse, but the information contained in the various types of doji are essentially the same, namely the emergence of market hesitancy, and Psychologically if emerge the hesitancy on the market then that hesitancy will spread out and the market will begin to question the sustainability of the trend that has occurred before, its emergence of hesitancy then made doji as an indicator of the chances of a trend reversal.

Since the emergence of a doji reflects hesitancy in the market of the continuity of the trend previously occurred that resulted in a potential trend reversal, then to be able to infer the direction of the trend that is going to happen, of course, we must first know about the trend of what has happened before the emergence of a doji itself. Therefore, in the analysis doji should also be conducted trend analysis that preceded before the emergence of the information of doji itself.

Things to be considered in the analysis of doji is that if doji formation is discovered after preceded by some small real body of previous candlestick, then doji will not bring significant meaning. While if the pattern of doji is found after some candlestick that have long real body, then the doji will bring the significant meaning and will be crucial for analysts to get ready to take action.