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In most cases, the doji is a reversal signal. This suggests that the momentum in a stock is starting to slow down, thus causing the value of the stock to go in the other direction. There might be times when a doji is a sign of a continuation too as the highs or lows of the stock are moving in the same direction as that of the rest of the stock before moving upward. This makes it difficult for people to figure out what changes might be taking place at a given time.
