What Happens in XAUUSD After a Bullish Reversal Doji Candle Pattern?
This bullish reversal doji candle pattern appears at market turning points in a downwards trend and warns of a possible trend reversal in the market trend - from a downwards trend to an upward trend. Below is an example of this bullish reversal doji candle pattern
Doji is a candlestick setup with the same opening & closing price. There are various types of doji setups which are formed on charts.
A bullish doji candlestick is where price of a instrument for a specific time period closes almost at same trading price. Bullish Doji candlesticks look like a cross, inverted cross or a plus sign & appears at the bottom of a downwards trend.
This bullish reversal doji candlestick setup appears at market turning points and warns of a possible trend reversal in the market. Below is an example of this reversal doji candle pattern that is a bullish doji if it appears at the bottom of a downward trend.
What Happens in XAUUSD After a Reversal Doji Candle Pattern? - Bullish Reversal Candle-stick Setup
Analysis of Bullish Doji Candlestick Pattern - All doji candlesticks pattern setup show indecision in the market this is because at the at the bottom the sellers were in control but none of them could gain control and at the close of the market the price closed unchanged at same price as the opening trading price. This bullish doji candle setup highlights that the overall price movement for that day was 0 pips or just a minimum range of 1 3 pips. Reading these candles patterns require very small pip movement between the opening price & closing price.
When this candlesticks pattern setup appears at the bottom of a down trend then this candlesticks pattern setup give a bullish trend reversal signal because it shows the momentum of the sellers is declining.
Once this doji candle stick setup is completed by price closing higher than the opening price of the candlestick that is drawn prior to the bullish doji candlestick then the bullish trend reversal signal will have been completed.
