When it comes to chart analysis, unusually large and small ranges have a lot of meaning. Measuring the distance between opening and closing price tells you a lot when trends develop or begin to lose momentum. Some specific patterns are excellent gauges of when reversal in the trend is likely to occur.
First a few terms: The “real body” is the range between opening and closing price, shown as a rectangle in the candlestick, which is either white (prices moved up) or black (prices move
The Japanese word "doji" means "mistake" or "a foolish thing." This probably is due to the appearance of a doji session. Instead of a rectangle representing the difference between opening and closing price, the doji is a horizontal line, meaning open and close were the same price or very close.
The doji is not so much of a mistake, however, as a session in which buyers and sellers may be struggling with one another for control, and neither side is able to move the price off its mark.
But interpre
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