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.
Disclaimer are applied to all posts & analysis in this my blog.
Disclaimer: Anything written in the blog is only my opinion. It can be accurate or inaccurate because market is not below my control. It is not a persuasion or any offering. Every decision in every transaction is the responsibility of the investor who must know & bear the risk of investment by themselves. Manage your money well. Thank you.... Happy Investing....^^
Showing posts with label Doji Star. Show all posts
Showing posts with label Doji Star. Show all posts
Wednesday, 11 November 2009
A little bit on stock analysis
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