The DOJI & SPINNING TOP in Forex Trading
Dogi Candle in Forex
Doji candlesticks in forex trading have the same opening and closing price or the movement is very low. These candlestick types give a sense of indecision between buyers and sellers. Speak of it as a weapon of war in forex trading chart.
Markets move above and below the opening price during the time frame, but close to or close to the opening price. The outcome is a deadlock; neither buyers nor sellers are in a position to gain leverage, resulting in a tie between the bulls and the bears.
There are four different types of Doji candlestick. The length of the upper and lower shadows may vary where the resulting candlestick produces a cross-like, inverted cross or plus sign. When a Doji is shaped on your map, it is important that you pay special attention to the preceding candlesticks. Doji’ refers to both the singular form and the plural form.
Spinning top Candle in Forex Trading
Spinning tops are comprised of a long upper shadow, long lower shadow and a small real body. The colour of the real body is not significant. What we must take away from this type of candlestick is the indication of the indecision between buyers and the sellers in forex trading.
Whether green or red, the small real body illustrates the slight movement from open to close and the wicks indicate that both the bulls and the bears were active during that time frame session. Although that session opened and closed with little change, prices moved considerably higher and lower during that period. However, neither the bulls nor the bears managed to gain the upper hand.