Doji candle on the monthly DXY chart confirms hits strong price & volume based resistance
The Doji candle is often taken as a reversal signal which can happen but what this candle is really telling us is there during its formation the bulls and the bears were in a battle for control much like a tug of war but that at its completion there was no overall 'winner' giving rise to a lack of direction. This is why the candle is best described as a candle of 'indecision'. From a trading perspective, Doji candles can give rise to good two-way price action but more often can cause choppy and volatile trading conditions. Fortunately, the example we have on the monthly chart for the DXY had a really wide range - over 200 pips which explains why this week the price action has been more muted.
Understanding candle patterns and blending them with the Quantum indicators can help to determine where the price is likely to pause and reverse. In this example, we have price-based support &...