Doji: The Dragonfly & The GraveStone

Hello there,

Today we will discuss the Doji. Interesting name, isn't it? Well, Doji Formation occurs only when the number of buyers and sellers come to the same. There's nothing to do with green or red candles when talking about the Doji. Why? Because it is never red or green, it always has a black colour.

Let's talk about the type of Doji:

1. Dragonfly Doji :

Whenever this candle forms in the graph, there is a huge chance of trend reversal. We should always wait for confirmation. When the next candle forms its close above Dragonfly's high, we should always be ready to invest. It is properly a sign of a strong bullish signal.

Let's talk about Candlestick's Duration:

For Intraday: 5-30 minutes

For Options: 1-5 minutes

Target: Wait for the next candle which shows a trend reversal.

Stoploss: Dragonfly's low

2. GraveStone:

It is just the opposite of Dragonfly. Whenever you see it on your graph assume it to be a contributing factor in a trend reversal. For confirmation, we should wait for the next candle formation. When the next candle gives us its close below the Gravestone's low, we will surely enter the market. It is a sign of a strong Bearish Signal.

Let's talk about Candlestick's Duration:

For Intraday: 5-30 minutes

For Options: 1-5 minutes

Target: Wait for the next candle which shows a trend reversal.

Stoploss: GraveStone's High

Thank You,