Market focus March 18, 2013

By Kenneth Robson on March 18, 2013 • ( 0 )

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.