Dojis Mean Indicision, Not Trend Reversal

Dojis means indecision or hesitation.  But often times it is overrated (by me): whenever I see one in real time I tend to use it as a trend reversal indicator.  It’s more probable if it occurs at major inflection point.  Even then, it’s only a possibility and we should wait for the next bar for confirmation.  Don’t let it shake out of your trade.

Take a look at DO. The first doji occurred just above the 20 ema, but it continued the down trend and fell through it the next day.  The second doji was also ignored and the up trend continued.

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