Intra-day Doji Formation
The first Doji outlined on the daily chart of General Electric on the previous page was a high-low Doji, where prices made the highs for the days first, and the lows for the day second. The intra-day chart (15-minute) of this occurrence is given below:
At the opening, the bulls were in charge; however, the morning rally did not last long before the bears took charge. From mid-morning until late-afternoon, General Electric sold off, but by the end of the day, bulls pushed GE back to the opening price of the day.
The second Doji daily chart on the previous page is shown next. In the intra-day chart below (Doji B), the Doji was created the exact opposite way as the chart shown above (Doji A) was created; Doji B made its day's lows first, then highs second.
At the opening bell, bears took a hold of GE, but by mid-morning, bulls entered into GE's stock, pushing GE into positive territory for the day. Unfortunately for the bulls, by noon bears took over and pushed GE lower. By the end of the day, the bears had successfully brought the price of GE back to the day's opening price.
As was presented above, the Doji formation can be created two different ways, but the interpretation of the Doji remains the same: the Doji pattern is a sign of indecision, neither bulls nor bears can successfully take over.