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Hi Preston
The Doji can be viewed as a reversal pattern but they usually form
part of other candlestick patterns. They are also considered to be
days of indecision or consolidation. If the market has a big up day
followed by a doji pattern the next day then this can be view as the
market running out of steam with confirmation being made on the next
trading day. With all candlestick patterns confirmation is the key.
Things like divergence, support and resistance lines can be used as
confirmation with candlestick patterns. There has been a heap of
info written about candlesticks and there magical powers. Most of it
is written after the event. I only view candlestick patterns as an
alert that something may happen.
I mainly look at the shadow part of the candle to see who is winning
the battle. The Bulls or the Bears. A long upper shadow is more
bearish and a long lower shadow is more bullish. If these long
shadow patterns happen near support & resistance lines then a
reversal could be happening.
I think the help files in MS has a section on Candlestick functions.
Sparkie
--- In equismetastock@xxxxxxxxxxxxxxx, pumrysh <no_reply@xxx> wrote:
>
> All,
>
> Recently ran across a trading system which used candlestick doji's
as
> a marker for trend reversals. As I am not a student of
candlesticks, I
> would like to know if anyone else has any advice/experience using
such
> a system?
>
> Thanks,
>
> Preston
>
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