FOUR PRICE DOJI
Definition
This candlestick is simply a horizontal line that has no upper and lower shadows.
Recognition Criteria
1. The length of the body is null.
2. There are no upper or lower shadows at all.
3. The open, close, high and low are the same throughout the entire day.
Candlestick Requirements and Flexibility
The body should be colorless and have exactly zero length. There should be no shadows.
Trader’s Behavior
A Four Price Doji is a very rare occurrence and it will be seen only if all the four price components are equal. That is, the open, high, low, and close turn out to be the same. It represents complete and total uncertainty by traders concerning the market direction. It usually occurs when a stock is very illiquid, has low volume, or the data source does not report any other price other than the closing price.
The Four Price Doji is not reliable on its own like most other candlesticks. It only reflects one day’s trading and conveys a sense of complete indecision. Like all other doji types, Four Price Doji is also important only in markets where there are not many doji. In a chart characterized by many doji, the emergence of Four Price Doji does not have a signal value.