Dojis & Shooting Stars
Doji's
Doji
Long-Legged Doji
Gravestone Doji
A doji represents indecision and forms part of several important formations:
- Doji Star
- Morning Doji Star
- Evening Doji Star
- Abandoned Baby
- Tri Star
In this context, the doji star that formed at the red circle was important in the overall assessment of the market. The triangle outlined in blue had a high of 1348 and a lower boundary of 1341, which is 7 points. The way to measure and project price on this descending triangle is to take the lower boundary of 1341 and subtract 7 points to arrive at 1334 and just like magic, a doji star confirmed our measurement.
In this instance, the gravestone doji indicated by the arrow occurred on a test of high, telling the trader that there are many willing sellers on this test.
Shooting Star's
Black Shooting Star
White Shooting Star
Hangman, Black or White
Here, we see a black shooting star at the test of the previous high within a Trader Vic 1-2-3 2B top reversal set up. The market could go no higher after the shooting star and this was confirmed two candles later breaking support at the 20EMA5. Note the first high was made on a relative of the doji, a spinning top.
Here, we see a black hangman at the test of the previous high within a Trader Vic 1-2-3 reversal set up. The market could go no higher after the hangman and this was confirmed four candles later breaking support at the 20EMA5. Note the first high was made on a long legged doji.
A pattern Linda Raschke calls Three Little Indians, three waves up to a climax, topped by a white hangman indicated by the arrow.
Teresa worked in the stock brokerage business for more than a decade prior to retirement from the industry in 1998 to become a private investor. She is a technical trader and uses Edwards & Magee patterns and Japanese candlestick techniques to analyze the market.
