Market focus March 18, 2013

Shoaku Doji 3D

Market hesitates

Market hesitates

Doje, Doji, Dojo

Doji is a term used  in Japanese candlestick chart to represent a period in which the opening and closing prices are the same, or nearly so.

  • I have not been able to find the precise meaning of the word Doji or its derivation in Japanese.
  • Doje however is an American slang word for penis
  • Dojo is a word for a school or hall for teaching karate, Since many expressions in candlestick terminology had a militaristic connotation, perhaps Doji has a similar derivation.

Doji are conspicuous features in candlestick charts. They look like crosses and show that the market is unsure where it will head next.  Following on a period of extended trending, it warns that the current move or trend is likely to change.

The Weekly chart for the week ending 16/03/13.

The candlestick appearance of last week’s trading is a long-legged or rickshaw Doji. Since it follows on an extended four month impulsive move, that lifted the index by 20%, the expectation for the coming week would be for lower prices. Any fall may well be short-lived as more attractive entry prices are likely to re-ignite buying.

Categories: Chart Analyses, Technical Analysis

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