Friday, April 18, 2008

Dow Jones Industrial Index Doji Candlestick Pattern

Doji form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary, and the resulting candlestick looks like, either, a cross, inverted cross, or plus sign. Doji convey a sense of indecision or tug-of-war between buyers and sellers. Prices move above and below the opening level during the session, but close at or near the opening level. Any upward movement will be cap at major resistance shown as red dashed line in the chart above. Weakness will result in testing of mid Bolinger Band support at around 12484 .

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