Granthara04.03.01Doji family: standard, long-legged, dragonfly, gravestone

Every price in Part 04 comes from an unnamed vegetable market and is a teaching example. Nothing here is a quote, a recommendation, or a record of any listed company.

04.03.01 · Doji family: standard, long-legged, dragonfly, gravestone

PreviouslyChapter 04.02 sorted candles by what they meant. This chapter sorts them by shape.

Neither side kept anything.

Lakshmi opens the onion auction at ₹30 a kilo. For four hours the bidding climbs, falls, climbs again. At the bell the last bid is ₹30.03. The board records a morning of argument and three paise of progress.

Four different mornings can end like that, and the old traders have four different names for them.

Updated

4
names for one idea — that the first bid and the last one nearly meet
Part 04 · Reversal Patterns
  1. 04.03.01 Doji family: standard, long-legged, dragonfly, gravestone
  2. 04.03.02 Hammer and hanging man
  3. 04.03.03 Inverted hammer and shooting star
  4. 04.03.04 Bullish and bearish engulfing
  5. 04.03.05 Harami and harami cross
  6. 04.03.06 Piercing line and dark cloud cover
  7. 04.03.07 Morning star and evening star
  8. 04.03.08 Tweezer tops and bottoms
  9. 04.03.09 Doji stars and the abandoned baby
  10. 04.03.10 Three inside up and three inside down
  11. 04.03.11 Three outside up and three outside down
  12. 04.03.12 Tristar, two crows, and the upside-gap variant
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Learn

A morning that ends where it opened

Every board in chapter 04.01 was read the same way: how far the session travelled, and how much of that it kept. A doji is the case where the second number is almost nothing.

Open ₹30.00, close ₹30.03. Three paise on a ₹30 onion is a tenth of one percent — far inside what Granthara's rules engine will still call the same price. The body is a line rather than a block.

That is the entire definition. Not a small body: a body so small that the opening and closing bids are, for practical purposes, the same bid. Everything else on the board is shadow — the prices that were reached and then given back.

See it

One idea, four boards

Every board below opens at ₹30.00 and closes at ₹30.03. Only the shadows differ — and the shadows are what earn the names.

Granthara's rules engine reads the first two as a doji, the third as a dragonfly and the fourth as a gravestone — on shadow position alone, with no reference to what came before.

Learn

What actually separates the four

Two questions do all the work, and neither of them is about the body.

Which side was visited? Both, and you have a standard or long-legged doji. Only below, and the body sits at the top — a dragonfly. Only above, and the body sits at the bottom — a gravestone.

How far? This is the difference between a standard doji and a long-legged one, and it is a comparison, not a measurement. ₹7.20 of travel is enormous beside a week of thirty-paise sessions and unremarkable beside a week of ₹8 sessions. There is no rupee figure that makes a leg long; there is only the board next to it.

A doji records a question the session failed to answer. It is not an answer about the next one.

Learn

The ideal form and the one you will actually see

Textbook drawings show a dragonfly with no upper shadow at all and a gravestone with no lower shadow at all. Real boards rarely oblige. The dragonfly above carries nine paise of upper shadow, and the gravestone three paise below.

Granthara's rules engine allows that, because a rule that admits nothing admits nothing useful. What it will not do is let a near-form borrow a meaning. A dragonfly is not automatically bullish and a gravestone is not automatically bearish — those words describe what people hope the next session does, and this board has no next session on it.

The honest reading of a dragonfly is the one in the panel above: prices were reached downward and given back, in this session, by this market. Whether that matters depends entirely on where the session sits, which is chapter 04.05.

Learn

What a doji permits

It permits you to say that neither side finished the day holding ground. It permits you to say which direction was tested, and roughly how hard.

It does not permit you to say who was buying, how many of them there were, or what they intend tomorrow. Every trade inside that range had a buyer and a seller in equal measure, and the board kept none of their names.

And it does not permit a direction. The same four numbers that end a long fall also appear in the middle of a quiet fortnight where they mean nothing at all. The shape is the observation. The location is the argument — and the location is not on this page.

The one thing to carry forwardA doji is defined by its body being almost nothing, and named by where its shadows fall. Neither half of that says a word about what happens next.
Remember

A doji is a session whose first and last bid are effectively the same — the body is a line, and everything else is shadow. Both shadows present makes it standard, or long-legged when the travel dwarfs its neighbours; a shadow below only makes it a dragonfly, above only a gravestone. The shape says which direction was tested and given back, and nothing whatever about tomorrow.

Next
04.03.02 — Hammer and hanging man

Next: a board with a small body and one long shadow — and two different names for it, decided entirely by the week before.