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

3 answers

• Nov 24, 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.
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• Nov 24, 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.
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• Nov 24, 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.
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