Inside the blue circle is the Doji star signalling that the amount of buyers in the market equates to the amount of sellers. The open of the 5 minute session is matched with an equal price close on the session. So effectively the price trailed down on the range and up and eventually settled where it opened 5 minutes ago. Now the interpretation of this candle lies in the preceding 4-5 candles which are upwards in motion and exhibiting higher highs.
NR4/IB is defined as a sequence of narrowing ranges to the amount of four candles and then is followed by an inside bar. This is a pregnant pause that can only amount in the price inflation or deflation as the entropy event expands and throws out momentum up or down. The strength of the interpretation of the Doji always must be taken alongside the consideration of the previous 4-5 candles to understand the context of the Doji star. In this case a large move to the upside comes to an inevitable store where no further value can be added to the market. Yin and Yang must be restored. The last buyer has left the room and now more sellers than buyers come to the front.
No comments:
Post a Comment