Big Fat Doji on the SPY...

Discussion in 'Trading' started by dac8555, Nov 17, 2006.

  1. dac8555


    If you follow this kind of stuff...i see a doji on the SPY daily and weekly charts..

    ....crawls back into his cave....
  2. So, what does that mean, per your interpretation?
  3. dac8555


  4. dac8555


    in japanense candlestick charting...a doji most often signifies a reversal, the signal is stonger if the market is oversold or overbought.

    Not my interpretation, that is the textbook definition.
  5. dac8555


    sorry..dont know why i did that twice...i am losing my mind.

    .....crawls back into cave......
  6. a doji is a neutral signal.
    A shooting star (gravestone doji) is more of a reversal signal by itself.

    Although in these markets plenty of candestick formations have been violated.
    I see plenty of bearish haramis (huge down red candlesticks) go right up the next day and soar.
  7. Mvic


    I am not into candles but doesn't a doji need confirmation to be bearish? I don't think you are going to get that as this market looks like it will likley rally in to the close today and hit a new high Monday.
  8. jan168


    isn't doji based on closing tick?

    lately the market's been reversed after dip; but no one knows! is option exp-day and sometimes there is a follow throuhg on next Monday.
  9. I use candles alot, and always wait for the close of candle. You might think that it is forming a pattern, act on it, and then when it closes you realize that the candle changed.

    Also, i havent looked, but i would want to see this by some sort of resistance. Everyone has there own technicals that they like to use.

    Dont just sell because you see a doji. If you sell just because of the doji and it fails, dont come back and say "candles dont work, blah blah blah."

    There a tool to be used in conjunction with other methods. Candle patterns are not system.
  10. dac8555


    right i agree. just brings attention to a potential situation. you need confirmation.
    #10     Nov 17, 2006