Europe iShares – Doji Stars at Retracement Levels

By | August 27, 2014

A gravestone doji star has a narrow opening and closing price near the low of its overall range. This forms a large upper wick that suggests intraday buying pressure was met with greater selling pressure. The candle often occurs near tops in price. The daily charts of the S&P 500 index and the major Europe iShare ETF’s all formed gravestone doji or gravestone-like stars in yesterday’s session. This is not unusual, similar stars have formed in the past which did not signal a turn in price, but these particular stars on the Europe fund charts have appeared at key Fibonacci retracement levels of the June highs and August lows. Any individual candle or candle formation signal requires confirmation, and these dojis may have little or no significance over time, but their formation at these levels does require attention.

26. RVT Europe chart

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