I really do not understand the notion of "doji" and "dragonfly doji" and some other terms.
Please help me understand more about these terms and I would like to thank you very much. I am new to trading but I do not understand much about charts. help me.
Thank you for having a very useful article for me.
A doji is when the opening and closing price of one particular candle are nearly the same. This means the candle's length will be extremely small.
This is an example a doji.
As you can see, the long red and green candle represents the price changing significantly from the candle start time to the candle close time. The 2nd candle with nearly no red/green is the doji. Let's say the price at the start of the candle is $5. The price at the end of the candle ends at around $5 as well, leading to no change. The vertical lines of the doji represent the highest and lowest filled buy/sell orders during that time period.
