Hello everyone,
This is Nolan’s first blog. – Michael Trehan
Looking for a doji candle, or any candle for that matter, is a type of technical analysis. A doji candle is a candlestick pattern, or a unique formation of candles on a chart. The Japanese used technical analysis to trade rice in the 17th century which was similar to the form that was initiated by Charles Dow. The credit for candlestick development and charting goes to a legendary rice trader Homma from the town Sakata. Doji are useful candlesticks that provide information on their own. A doji forms when a security’s open and close are virtually equal. A doji can look like a cross, plus or inverted cross. Dojis transmit a sense of standoff between the buyers and sellers. Prices go under or above the opening level during the session, but close at or near the opening level. The shape (inverted cross, plus or cross) is determined by the shadow of the candlestick or how high the price went above the the closing level or how low it went before finalizing at the closing price. Dojis usually signal an inflection point in the stock price.
– Nolan Laplante