Trading Diary

The Long-legged Doji has one or two very long shadows. Long-legged Doji’s are often signs of market tops. If the open and the close are in the center of the session’s trading range, the signal is referred to as a Rickshaw Man. The Japanese believe these signals to mean that the trend has “lost it’s sense of direction.”

The Gravestone Doji is formed when the open and the close occur at the  low of the day. It is found occasionally at market bottoms, but it’s forte is calling market tops. The name, Gravestone Doji, is derived by the formation of the signal looking like a gravestone.

A Doji is formed when the open and the close are the same or very close. The length of the shadows are not important. The Japanese interpretation is that the bulls and the bears are conflicting. The appearance of a Doji should alert the investor of major indecision.