Question

When a Doji candlestick pattern occurs in an __________ or a ___________, it indicates that the market is likely to ___________

A) Uptrend, downtrend, continue the trend
B) Range-bound market, consolidation, remain stagnant
C) Bullish market, bearish reversal, change direction
D) Volatile market, uncertainty, stabilize

Answer 1

When a Doji candlestick pattern occurs in an Uptrend or adowntrend it indicates that the market is likely to continue the trend. Option A is correct.

Step-by-step explanation:

When a Doji candlestick pattern occurs in an uptrend or a downtrend, it indicates that the market is likely to continue the trend. A Doji is a candlestick pattern characterized by its open and close being very close or equal, suggesting market indecision, and its occurrence within an existing trend signals potential continuation.

In an uptrend, a Doji may signify a brief pause or hesitation in buying momentum but often implies a potential resumption of the upward movement. Similarly, in a downtrend, a Doji could indicate a temporary pause in selling pressure, hinting at the likelihood of the downtrend persisting.

Option A is correct.