The Doji Festival

One of the common candlestick patterns that Dip Buyers look for is the Hammer. Although there are some wide varying definitions for what this looks like, here are some common examples:

Certainly a powerful buy entry point to look for, but one that needs confirmation from the candle that follows (based on selected timeframe). Another candlestick pattern that falls inline with the Hammer is the Doji. Here is the minor way in which it differs:

One way to really enhance this pattern is to find 2 consecutive days with this Doji pattern. One such chart I reviewed this morning has it:

This Daily chart of FL (Foot Locker) shows 2 Dojis formed on the 50 day simple moving average. If no position, look for a continued hold above this moving average and enter according to your trade profile & system.

Trade ’em well.

 

Leave a Reply

Your email address will not be published.