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Tuesday, November 22, 2011

DOJI

The Doji is a powerful Candlestick formation, signifying indecision between bulls and bears. ADoji is quite often found at the bottom and top of trends and thus is considered as a sign of possible reversal of price direction, but the Doji can be viewed as a continuation pattern as well.

A Doji is formed when the opening price and the closing price are equal

TRADING IDEA

IN A DOWNTREND BUY IF CLOSE ABOVE DOJI HIGH PLACE

DOJI LOW AS A STOPLOSS TGT:BUYPRICE-STOPLOSS+BUYPRICE

EX:DOJI HIGH 105 LOW 95 CLOSING 106.50 BUYING PRICE=106.50 STOPLOSS=95 TGT=106.50-95+106.50=118 1ST TGT

2ND TGT=106.50-95+118=129.50........

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