Technical Analysis - IIII

Neutral Pattern

1. Doji

This line implies indecision. The security opened and closed at the same price. These lines can appear in several different patterns. Double Doji lines (two adjacent doji lines) imply that a forceful move will follow a breakout from the current indecision.


2. Spinning tops

These are neutral lines. They occur when the distance between the high and low, and the distance between the open and close, are relatively small


3. Harami ("pregnant" in English).
This pattern indicates a decrease in momentum. It occurs when a line with a small body falls within the area of a larger body. In this example, a bullish (empty) line with a long body is followed by a weak bearish (filled-in) line. This implies a decrease in the bullish momentum


Reversal Patterns

1.Dragon-fly doji

This line also signifies a turning point. It occurs when the open and close are the same, and the low is significantly lower than the open, high, and closing prices.


2. Gravestone doji

This line also signifies a turning point. It occurs when the open, close, and low are the same, and the high is significantly higher than the open, low, and closing prices


3. Star

Stars indicate reversals. A star is a line with a small real body that occurs after a line with a much larger real body, where the real bodies do not overlap. The shadows may overlap.



4. Doji star

A star indicates a reversal and a doji indicates indecision. Thus, this pattern usually indicates a reversal following an indecisive period. You should wait for a confirmation (e.g., as in the evening star illustration) before trading a doji star.