InvestorQ : I have read some reports of a 4-price DOJI. What exactly is that and how do you use it to trade?
Bhavik Nehru made post

I have read some reports of a 4-price DOJI. What exactly is that and how do you use it to trade?

Answer
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Niraj Mehta answered.
1 year ago


While the 4-price DOJI is a very rare occurrence, it is more for theoretical understanding than for practical application. Unlike the dragonfly DOJI and the gravestone DOJI, the 4-price DOJI is a very rare occurrence and hence it is rarely used in practice. The rare, four-price DOJI, occurs when the market opens, closes, and in-between conducts all buying and selling at exactly the same price throughout the time period. In fact, the 4-price DOJI is the ultimate indicator of indecision in the market and shows that the market is showing absolutely no inclination to go anywhere in particular. These trends are very rare and more for understanding the extreme patterns.

Apart from the very rare 4-price DOJI, there are dozens of different candlestick formations, along with several pattern variations. Most of them are not of much practical use and those of you who are really interested can check out on some of the popular global websites on technical analysis for the full list. These sites thoroughly explain each candlestick pattern in elaborate detail from the theoretical and practical perspective. In fact, they even provide statistics on how often each pattern has historically given a reliable trading signal. It’s certainly helpful to know what a candlestick pattern indicates – but it’s even more helpful to know if that indication has proven to be accurate 80% of the time. As we said, it is the simple DOJI, dragonfly DOJI and the gravestone DOJI that are very commonly used and have the greatest practical application for traders.