The northern Doji is called a Doji that shows up during a rally. Therefore, dojis are signals to close positions, since a Doji alone does not mean a price reversal. Better to attend a false signal than ignore a real one. In view that a Doji is such a powerful signal, it is better to act upon it. When trading commodities, indices, or stock ETFs the trader should take this into account, though. So a Doji will always have a similar meaning: The trend is compromised. In this case, a bullish trend of a pair is a bearish pare on the inverse pair and vice-versa. That observation may apply to the stock market but is useless in pairs trading, as they are symmetric. Nison also points out that, from his experience, the Doji loses some reversal potential during downtrends. Steve Nison says that a dog is a sign of indecision by buyers, and an upward trend cannot be sustained by undecided traders. The Doji is a powerful signal to detect market tops. Nevertheless, if both levels are separated a few pips, and the candle can still be seen as a single line, it can be considered as Doji. The perfect Doji has the same open and close values. The next candles confirm the Doji’s signal.The probability of a turn increases if in addition to the Doji: The Doji is a powerful sign of trend change. Buyers and sellers are in a state of mental indecision. The figure of the Doji has a precise meaning. The Doji is characterized by having the open and close at the same level while standing out for its elongated upper and lower shadows. This figure is so important that we need to understand it very well, as it is one of the safest trading signals when properly applied. The Doji is a special candle, not only because of its striking appearance but also because it is one of the most vital signals in trading.

Steve bigalow reviews