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Wednesday, 11 November 2009

A little bit on stock analysis

Doji star is created when the closing & opening prices are at the same or very close.

Usually doji star creates a reversal signal & usually it's quite accurate, can be said as 80% of accuracy.
But, sometimes doji star can give you a false signal, mostly gives you good signal.

There's 3 types of doji:
-Long legged doji
 Traded very low goes to high & ends at the open at which the leg is longer than its head, the longer the leg the more accurate the signal
-Dragonfly doji
 Traded Low & close at the open price which is today's high
-Graveyard doji
 Traded high & close at today's low & open. It's called as graveyard as the day's hero has died / beaten because of the dropped price

You can see the graph below.


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