Doji is an useful indicator but as other investment candles are a signal, an alert, but they are not complete indicators for trading position.
In the graph below, applied to FTSEMIB, a doji appeared in the middle of the last downside movement: one could suppose to close (and wait) the short postion, but this would be a mistake.
Why?
(enlarge to see it better)
italian tags: inverione per doji, target del ciclo precedente, numerosità e numero minimo di candele per questo ciclo ed il precedente, analisi sul faro dow jones
Any source
In the graph below, applied to FTSEMIB, a doji appeared in the middle of the last downside movement: one could suppose to close (and wait) the short postion, but this would be a mistake.
Why?
- Target of the previous cycle - Down target (put a stop to it) has not been reached
- Several candles of the current cycle - very few candles from the reversal of pattern (from long to short), not
- Analysis on "lighthouse" Dow Jones- Use of the "drive" american market - Another analisys on Dow Jones (but avaible after the last close) would have revelead a clear reversal of pattern from long to short in US market
(enlarge to see it better)
italian tags: inverione per doji, target del ciclo precedente, numerosità e numero minimo di candele per questo ciclo ed il precedente, analisi sul faro dow jones
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