For a better understanding of this article, you should already know what Japanese Candlesticks are and all their features; for this reason, we suggest you to read this introductory article to Japanese Candlesticks: Japanese Candlestick Chart ( So that you can understand also the Ratings given to the Candlestick Patterns for the “quality” of the signal and for their frequency to “appear” on Charts).
Let’s analyse now the following Candlestick Patterns: “Doji Gapping Down” and “Doji Gapping Up”.
– Normally it should be a signal of continuation of the current Trend.
– You can find it in the variants: Down and Up, depending on the Trend in which is located.
Doji Gapping Down
– It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern.
– There is a Gap Down between the Doji and the Previous Candle.
– After the Gap Down, there is the Doji Candle.
Doji Gapping Up
– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern.
– There is a Gap Up between the Doji and the Previous Candle.
– After the Gap Up, there is the Doji Candle.