- Sentiment: Neutral
- No. of candles: 1
- Direction: Neutral
What Is The Four Price Doji Pattern?
The Four Price Doji pattern is a neutral Japanese candlestick pattern that consists of a single candle.
The candle pattern has a small real body, indicating that the opening and closing prices are close to each other, with no long upper and lower wicks at all, indicating the extreme extent of the indecision in the candle.
What Is The Psychology Behind The Four Price Doji Pattern?
The Four Price Doji pattern reflects a period of market indecision, with neither buyers nor sellers able to gain control.
The small real body of the candle indicates that the opening and closing prices are close to each other, suggesting that the market is in a state of balance.
The lack of upper and lower wicks indicate that the price has traded in an unusually tight range, representing extreme indecision.
Japanese Candlestick Charting Techniques, Second Edition
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Trading the Four Price Doji pattern can be challenging since it is a neutral pattern, and it is difficult to predict which way the price will move next.
Traders can use other technical indicators and chart patterns to confirm the direction of the trend before entering a trade.
However, it is essential to be aware of the overall market context and to consider factors such as support and resistance levels, as well as the strength of the prevailing trend.
Additional Tips
The Four Price Doji pattern can provide valuable information about market indecision and volatility, but it is crucial to use it in conjunction with other technical indicators and chart patterns to confirm the trend change or continuation.
Keep in mind that a single candle does not necessarily indicate a significant change in market sentiment, and it is always necessary to use proper risk management techniques to protect against potential losses.
Continue to learn about Japanese candlesticks through books, such as Steve Nison’s “Japanese Candlestick Charting Techniques” and “Beyond Candlesticks.”