What is Doji Candles in Gold Trading?
What Does Doji Candle Mean? - Doji Candle Definition
Doji is a candlestick pattern with same opening & closing price. There are different types of doji candle patterns which form on charts.
A doji candle is where gold price on a chart for a given time period closes almost at the same gold price. Doji candlesticks look like a cross, inverted cross or a + mathematical sign.
following illustrations explain different patterns of the doji candle:
Long-legged doji candle has long upper and lower shadows with the opening & closing gold price at the mid. When Long legged doji appears on a chart it demonstrates indecision between the xauusd traders, buyer and the sellers(bears).
Below is example screen-shot image screen shot of the Long Legged
What is Doji Candles in Gold Trading? -Analysis of Doji Candle Pattern
Cross Doji Gold Candle-stick
Cross doji candle pattern has a long lower shadow & a short upper shadow & the open and close of the day is the same.
This gold candlestick pattern formation shows up at market turning points and warns of a possible price trend direction reversal in the market. Below is as example of this Cross doji candle formation
Cross Doji Candle Pattern - Analysis of Doji Candle Pattern
Inverted Cross Doji Candle Pattern
Inverted cross doji candle pattern - candlesticks have a long upper shadow and a short lower shadow & the open & close is the same.
This reversal doji candle set-up appears at market turning points & warns of a possible price trend direction reversal in the market. Below is an example of this reversal doji candle pattern
Inverted Cross doji Candlestick Pattern - Analysis of Doji Candle Pattern
Analysis of Doji Candle Pattern - All doji candlesticks pattern explain indecision in the Gold market this is because at the top the buyers were in control, at the bottom the sellers were in control but none of them could gain control and at the close of the xauusd market the gold price closed unchanged at the same gold price as the opening gold price.
This doji candle stick pattern displays that the overall xauusd price movement for that trading day was 0 pips or just a minimum price range of 1 to 3 pips. Reading these candles patterns need and require very small pip movement between the opening price and closing gold price.
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