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Which type of doji candlestick is considered the most reliable in predicting cryptocurrency price reversals?

avatarHAMID WIJANARKODec 26, 2021 · 3 years ago3 answers

In the world of cryptocurrency trading, there are various types of doji candlesticks that traders use to predict price reversals. Among these, which specific type of doji candlestick is considered the most reliable in accurately predicting cryptocurrency price reversals?

Which type of doji candlestick is considered the most reliable in predicting cryptocurrency price reversals?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    The most reliable type of doji candlestick in predicting cryptocurrency price reversals is the dragonfly doji. This type of doji candlestick forms when the opening and closing prices are at or near the high of the candlestick, with a long lower shadow. It indicates that buyers have regained control after a period of selling pressure, suggesting a potential bullish reversal in the cryptocurrency price. Traders often look for dragonfly doji candlesticks as a signal to enter long positions or close short positions.
  • avatarDec 26, 2021 · 3 years ago
    When it comes to predicting cryptocurrency price reversals, the gravestone doji candlestick is considered the most reliable. This type of doji candlestick forms when the opening and closing prices are at or near the low of the candlestick, with a long upper shadow. It suggests that sellers have regained control after a period of buying pressure, indicating a potential bearish reversal in the cryptocurrency price. Traders often see the gravestone doji candlestick as a signal to enter short positions or close long positions.
  • avatarDec 26, 2021 · 3 years ago
    According to a study conducted by BYDFi, the most reliable type of doji candlestick in predicting cryptocurrency price reversals is the long-legged doji. This type of doji candlestick forms when the opening and closing prices are close to each other, with long upper and lower shadows. It indicates indecision in the market and suggests a potential trend reversal. Traders often use the long-legged doji candlestick as a signal to wait for confirmation before making trading decisions.