Dojis at the Highs – A Look at DIA QQQQ and SPY

Bycjrosen

All three major US Stock Market Indexes – along with their respective ETFs – have formed two dojis in a row above their upper Bollinger Bands. While this certainly doesn’t guarantee a reversal, it’s at least a warning sign that would benefit us to take a closer look.

Let’s see the price moves of the DIA, QQQQ, and SPY off their March lows and take a look at the current doji candles along with other instances where at least two dojis in a row formed… and see what happened next.

Double Doji – Should Resolve with Larger Move

Bycjrosen

Interestingly enough, the S&P 500 Index formed two doji candlesticks over the last two sessions, revealing a market experiencing indecision, which should give way to a larger trend move today or soon, so be expecting some sort of range expansion day. Beyond the two doji ‘indecision’ candles, we have a negative momentum divergence, and a…

What is a Doji?

Bycjrosen

Take a moment and educate yourself on what a “doji” is and what it might mean. A standard doji is a type of candlestick pattern that is comprised of a single ‘candle’ where the open and close price are equal (or very close) but the high and low of the candle are distant from the…