Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 4 - Technical Analysis
Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 5 - Psychology
Skillsfirst Level 5 Diploma in Financial Trading (RQF) - Module 6 - Risk and Money Management
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CANDLES AND DOJI

The relevance of a doji depends on the preceding trend or preceding candlesticks.

  • After an advance, or long white candlestick, a doji signals that the buying pressure is starting to weaken.
  • After a decline, or long black candlestick, a doji signals that selling pressure is starting to diminish.

Doji indicate that the forces of supply and demand are becoming more evenly matched and a change in trend may be near. Doji alone are not enough to mark a reversal and further confirmation may be warranted.

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