Alright guys, I'm working on an article on profit taking right now because I get asked that question so often.
In order to understand the article you'll need a firm understanding of the "Doji".
This is a chart formation where the opening and closing price of a particular security are the same.
(I'm working on the graphic with the copy, but this will do for understanding)
The doji itself is a fairly rare chart formation.
- 7/10 times when someone points out a doji they're actually pointing out a "spinning top". THEY ARE NOT THE SAME THING. A Doji candle means the opening and closing price are the same. Not close. Close is a spinning top (5% or so body visible).
The psychological difference there is extremely important. This means that me as a bull and the other side as a bear have come to an Agreement on price... FOR AN...