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Difference between buy limit and buy stop order

When you are entering a trade there are 2 methods to do it

  • By entering at market price:  You will be buying or selling at the current market price.
  • Using pending orders: If you want to buy/sell at a particular price (which you analyse as important) and that price has not yet reached, you can use pending orders.

When to use pending orders?

If you are buying:

Pending orders for a buy can be put as buy limit or buy order.
  • Buy limit: If you want to buy at price below the current price use this tool.

Japanese candlestick pattern: DOJI

What is a doji?

Doji is a type of candle in which the opening and close price are same. This is one of the most important reversal patterns in Japanese candlestick chart.

How to identify a doji?

doji candlestick pattern

See the above picture, the second arrow shows a perfect doji. The opening and close price are same.
Even when the opening and closing prices are a few pips apart, it is considered a doji candle. See the first arrow in the picture

Why doji candlestick is important?