Market participants have witnessed a strong rally continue this week and gold has risen significantly over the past three weeks. As this week ended, gold futures posted significant gains of 2.04%. Gold opened at around $1,862 on Monday and closed the week slightly below $1,900. How will gold act from now on? The master analyst Gary Wagner, who seeks an answer to this question, explains the gold analysis in his own words. cryptocoin.com We have prepared for our readers.
Gold forms ‘Doji’, a very important candlestick
Gold prices rose for three of the five trading days and only suffered a moderate price drop on Tuesday, February 15. The biggest increase this week was yesterday, when gold gained around $30 and rose above the key psychological level of $1,900. Since June 1, traders await more news on Russia-Ukraine tensions, while Friday’s price action reflects that they are waiting to see if next week’s talks will lead to a reduction in geopolitical tensions in Russia and Ukraine.
Uncertainty over tensions in Ukraine has resulted in a unique type of Japanese candlestick, one of the more important types of single candlesticks. Friday’s opening was at $1,901.40 and is currently fixed at $1,900.80 creating a very important candlestick Doji. It is created when an extremely small real body is formed. Japanese candles are drawn by forming a rectangle around the opening and closing price of the charted session.
A ‘Doji’ is created when the opening and closing price are nearly equal. In Japan’s chambers of commerce, investors shout “Doji, Doji” when this type of candlestick is created.
As far as Friday’s Doji is concerned, it could be labeled as a variation of the ‘dragonfly doji’, one of five different types of candles. The dragonfly doji is created when the actual body (opening and closing price) occurs at the top of the trading range. In its purest form, it occurs at the high, but an acceptable variation is if it occurs very close to the high price of the session.
How should the resulting Doji be interpreted?
All Dojis are interpreted similarly and this is because neither the bullish nor the bearish fraction have absolute control of price action. These are harbingers of two different actions to come.
When this type of candle occurs after a defined rally, it can signal consolidation in the market as a new high price forms a foundation before moving to higher ground. However, it could also be a harbinger that predicts a significant reversal in the price direction. In this example, it would herald a significant reversal from bullish to bearish. Validity in this type of candle is when more data becomes available confirming what this Doji predicts.
If large red candles follow it (when the opening price is well above the closing price of a session), this could confirm a key reversal. If this candlestick type is followed by a horizontal trading range with small body candles, it most likely indicates consolidation.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.