AUD/USD: What An Incredible Doji Candlestick

When you study candlestick theory – and all sorts of analysis theories in general – the textbooks you read usually come with numerous illustrations explaining the theory you just studied. Once you sit down before the computer screen, however, and actually begin trading in real life, you quickly realize that reality is rarely as neat and ideal as those textbooks examples.

This, however, is one of those rare cases where reality does look like a textbook example. Look at this incredible doji candlestick on the AUD/USD weekly filter chart that has formed under the resistance at 0.7840. It is a clear indication that the pair is very likely to move to the downside again, probably until it reaches the support at 0.7500, should it break below the support at 0.7800.