Excerpt from: Forex Tips
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| August 07, 2009 | | The following article will use Doji for the purpose of providing specific and detailed examples | Doji are neutral indicators that simply represent a “tie” in the
never-ending battle between buyers (bulls) and sellers (bears). They
form when the open and close of a candlestick are equal or very close
to equal and are considered a neutral formation suggesting indecision
between buyers and sellers—b ullish or bearish bias depends on previous price swing, or trend.
Length of the upper and lower shadows (wicks and tails) may vary giving
the appearance of a plus sign, cross, or inverted cross. Completed doji may help to either confirm, or negate, a potential significant high or low has occurred especially when found at support or resistance, after long trend or wide-ranging candlestick.
Full Article at FX360.com
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