Chart Patterns
Doji
A candlestick where open and close are nearly equal.
Full Definition
A doji is a candlestick pattern where the opening and closing prices are virtually equal, creating a cross or plus sign appearance. It signifies market indecision and potential reversal. Different doji types include standard doji, dragonfly doji (long lower shadow), gravestone doji (long upper shadow), and long-legged doji (long shadows both ways).
Example
After a strong uptrend in EUR/USD, a doji forms at resistance. This indecision candle, especially at a key level, might signal the uptrend is losing momentum and a reversal could follow.
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