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The Dow Theory is a theory based on observations of Mr Charles Dow. These observations are known as tenets of the Dow Theory. Using this theory, you could easily understand what phase the market is in and make predictions about what is going to happen next.
GRM(Gross Refining Margin)
GRM is the difference between Crude oil price and Total value of Petroleum Products produced by the, Refinery
Two gravestone doji candlesticks
A single gravestone doji shows the bearish trend reversal. The long shadow above the candlestick indicates price rejection from the key level.
Two dragonfly doji candlesticks
A dragonfly doji candlestick is used to show bullish trend reversal. The long shadow below the candlestick body shows the rejection from a key level. Rejection from key level shows that buyers are willing to buy from that level, and they are now stronger than sellers. That’s why they are pushing the market up in the form of a long shadow below the candlestick’s body.
When the rejection occurs two times, the probability of trend reversal increases. That’s why the formation of two dragonfly doji candlesticks increases the probability of bullish trend reversal compared to a single dragonfly doji.
A double doji pattern can form in three pairs. Each pair is a combination of two doji candlesticks.
⭕️Doji and long-legged doji pair
⭕️Two dragonfly doji candlesticks pair
⭕️Two Gravestone doji candlesticks pair
How to identify a double doji candlestick pattern?
Types of doji candlesticks:
👉🏻Doji
👉🏻Dragonfly doji
👉🏻Gravestone doji
👉🏻Long-legged doji
👉🏻Double doji is a candlestick pattern in which two doji candlesticks form consecutively. It shows the ranging market structure and indicates a pause in price trend
Two candlesticks with the same low & similar body length.
Like below:
Traders commonly look for these patterns because they believe that they are a powerful indication of the market reversing.
However, according to Thomas Bulkowski’s analysis, it shows it actually has a 52% chance of continuing a bearish trend
