Simple definition of the candlestick:
The Doji candlestick is one of the most important candlesticks in the chart. It draws the trader attention to the fact that there is something in the chart. The uses of this candle is secondary after completing the technical analysis of the currency chart or commodity.
There are several forms for this candle.
Characteristics of Doji candlestick:
- The candlestick does not have an object, or the body of the candle is too small.
- The length of the candle is small and short compared to the rest of the candles.
- When the quality in the graph shows that there is a price reversal.
- The accuracy of the candle is medium, so it is not fully reliable in technical analysis.
In the previous picture a small Doji candlestick has no body .. give an indication of the reflection of the price .. candle on the daily Frame and we note the decline that happened.
- The accuracy ratio of the candle if found on all medium time frames.
- It is not possible to rely on the candle completely and determine the price trend.
- Serve as an assistant for technical analysis only.