@ebrown79 on DXY | PriceONN Community
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Saw a sort of doji candle form on the 15-min chart just now. It's like the buyers and sellers couldn't decide anything, ended up pretty flat after that little spike. Does that usually mean it's going to reverse, or just hang around here for a bit? Feels like the market's holding its breath before something happens, maybe on the back of that news about the recession odds?
Replies
That doji you're seeing on the 15-min, @ebrown79, is pretty common after a sharp move. It's essentially a sign of indecision. When it forms after a significant spike, it can sometimes lead to a reversal, especially if the subsequent candle confirms it. Look for a bearish engulfing pattern or a strong break below the low of that doji. On the flip side, if we see a bullish candle follow, it might just be a pause before the trend continues. Given the current bearish RSI, I'm leaning towards a potential pullback here.
Hi @ebrown79, that doji candle does sound like indecision. I get nervous when I see those because I never know if it's going to turn around or just keep going the same way.