Posts Tagged Under: Doji

14 Essential Candlestick Patterns to help you read Charts


Candlestick patterns serve as a good visual guide for both day traders and swing traders. You can recognize momentum, change of direction (rejection) and/or price confirmation.  It usually takes time to recognize these patterns, but with a little bit of training and understanding, you can start seeing them in real time trading.

Single Candle Pattern

As we will see, price action traders separate between 1, 2 and 3 candlestick patterns. The 2 and 3 pattern formations are usually an alternation of the 1 candlestick patterns so it’s important that we start here first.

Generally, 2 and 3 candlestick patterns carry more weight because they offer more context in our opinion.


Yo-Son and In-Sen

We can also call them “momentum” candles because they are typically large candles without long, or any, wicks. In case of a bullish Yo-Sen, it means that price has rallied all the way from the open until the close of the candle

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How to improve signal accuracy of Dojis


Dojis are among the most popular candlestick patterns; they are easy to spot, happen frequently and visualize an important market structure. A Doji candlestick consists of 2 candle-shadows to both sides and a small body – typically, the body is just a single line when the open and the closing price of the Doji fall at the same level. However, Dojis don’t necessarily have to open and close at the same price. A reasonably small body can also be considered a Doji pattern – it is more about the psychology and the balance between buyers and sellers that are important and not the exact shape.

The screenshots below show 2 classic Doji patterns. To read and interpret Dojis correctly, it is also important to consider the candles before the Doji and the first candle immediately after the Doji. A Doji after a rally and a subsequent bearish candle can foreshadow a

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