Trading the Doji Candle
Trading the Doji Candle explained by professional Forex trading experts the “Trading the Doji Candle” FX trading team.
Trading the Doji Candle?
Being able to identify and interpret candle charts is an important technical market skill for Forex traders to master. Candle shapes and patterns can give visual insight into what traders are thinking as well as provide critical levels of support and resistance. With this idea in mind we will focus on recognizing and trading one of the markets most prevalent candles, the doji.
What is a doji?
A doji candle is formed when price causes a candle to open and close at nearly the same price. Pictured above, you will see that doji candles visually will appear like a plus sign or a cross on your graph. The body of the candle should be very short, with wicks elongated to either side. These wicks symbolize the market volatility during the specified charting period. However, since price opened and closed at virtually the same price neither the bulls or bears appear to be in control of the market.
Since market momentum has stalled, the doji candle traditionally signifies market indecision. Traders can use this indecision as an opportunity to plan for an increase in momentum. Often traders choose to use support and resistance levels for fresh market breakouts or to identify areas where a broader trend may continue.
Trading the Doji Candle Conclusion
For more information about currency trading brokers visit TopForexBrokers.com Forex brokers comparison website, Tip ForexSQ.com foreign exchange trading
experts please by share this article about Trading the Doji Candle