Dreaded Doji Candle
Dangerous Doji: As the market feels heavy currently, I thought I may share in retrospect how I look for potential topping formations in stocks. There is a variety of ways to do it, and sure it is easy to Monday morning quarterback. But this in the future could help to look for certain candlesticks that should put one on alert to at the very least trim positions, if not sell completely. I share 6 examples here of the doji candle and circled each one so everyone could visualize what it looks like. These candles are often adept at signaling possible changes in the prevailing direction. All of them were preceded by uptrends, so they were a clue to minimize holdings and wait one a better future entry. These work in both up and downtrends (NVDA is a possible example as Friday recorded a doji candle after a 100 handle decline. These are very rare and indicate uncertainty and have the same opening and CLOSING PRICES. Let's take a look at several illustrations.