Doji Candlestick pattern

Noticed the formation of Doji candlestick patterns on Dec 12th for APPL (source of chart: finance.yahoo.com)

Doji represents a state of uncertainty where neither bulls or bears win.

In Technical Analysis, a candlestick captures the movement of the market for the timeframe/session specified. The session could be a minute, hour, day, week, month...

The top of the candle body represents the open price, the bottom closing price, the end of the upper wick the highest price within the session, and the end of lower wick the lowest price within the session.

Color coding the candle makes it easy to analyze whether the market was bullish or bearish. Typically red indicate a bear, and green a bull. See the price movement of Apple on July 24 and July 31st.

--

Dojis are formed when Open and Close price are the same. There are 3 types of Dojis to lookout for:

Long legged Doji: Forms when big upward and downward movements within a session, but neither bull or bear wins. Its a fight. When the overall market trend is moving up or down, the formation of a long legged Doji may be indicative of a trend reversal.

Dragonfly Doji: Show that even though bears have pushed the price down, it returned to the open state. It is a reliable indicator that the trend is reversing.

Gravestome Doji: This is an indicator that the bullish market is nearing an end.

..