The Doji candlestick chart pattern is a formation that occurs when a market’s open price and close price are almost exactly the same. It is characterized by having a small length, which indicates a small trading range. A Doji candlestick can take the form of a plus sign, a cross, or an inverted cross.

The different types of Doji pattern are- Neutral Doji, Long-legged Doji, Gravestone Doji and Dragonfly Doji

1-Neutral Doji: It is generally forms when the buying and selling powers for a stock in the market are at an equilibrium. It means that the price of the financial asset closes in the middle of the day’s high and low. Following the trend prior to the Doji, a change in direction can be expected. A neutral Doji looks like a plus sign.

2- Long-legged Doji: Long-legged Doji, which looks like a cross, also indicates that the price of the financial asset being traded closes in the middle of the day’s high and low. A long-legged Doji forms when the buying and selling powers for a stock in the market are at an equilibrium. This Doji type shows a great amount of indecision among buyers and sellers in the market.

3-Gravestone Doji: Gravestone Doji (which looks like an inverted “T”) signifies that a stock or other financial asset opened and closed at the day’s low. The pattern normally forms at the bottom or end of a downward trend. The longer upper side of the Gravestone Doji, also known as a shadow, hints at a possible end to the current trend direction in the market and a reverse in direction.

4- Dragonfly Doji: Opposite to the Gravestone Doji, a Dragonfly Doji (which looks a “T”) signifies that a stock or other financial asset opened and closed at the day’s high. It tends to form at the peak of an upward trend and signals a possible trend reversal. This Doji type also shows a great amount of indecision among buyers and sellers in the market.

The Doji candlestick chart pattern is a formation that occurs when a market’s open price and close price are almost exactly the same. It is characterized by having a small length, which indicates a small trading range. A Doji candlestick can take the form of a plus sign, a cross, or an inverted cross.

The different types of Doji pattern are- Neutral Doji, Long-legged Doji, Gravestone Doji and Dragonfly Doji

1-Neutral Doji: It is generally forms when the buying and selling powers for a stock in the market are at an equilibrium. It means that the price of the financial asset closes in the middle of the day’s high and low. Following the trend prior to the Doji, a change in direction can be expected. A neutral Doji looks like a plus sign.

2- Long-legged Doji: Long-legged Doji, which looks like a cross, also indicates that the price of the financial asset being traded closes in the middle of the day’s high and low. A long-legged Doji forms when the buying and selling powers for a stock in the market are at an equilibrium. This Doji type shows a great amount of indecision among buyers and sellers in the market.

3-Gravestone Doji: Gravestone Doji (which looks like an inverted “T”) signifies that a stock or other financial asset opened and closed at the day’s low. The pattern normally forms at the bottom or end of a downward trend. The longer upper side of the Gravestone Doji, also known as a shadow, hints at a possible end to the current trend direction in the market and a reverse in direction.

4- Dragonfly Doji: Opposite to the Gravestone Doji, a Dragonfly Doji (which looks a “T”) signifies that a stock or other financial asset opened and closed at the day’s high. It tends to form at the peak of an upward trend and signals a possible trend reversal. This Doji type also shows a great amount of indecision among buyers and sellers in the market.

Gross margin is a company’s net sales revenue minus its cost of goods sold (COGS). In other words, it is the sales revenue a company retains after incurring the direct costs associated with producing the goods it sells, and the services it provides. The higher the gross margin, the more capital a company retains on each rupee of sales, which it can then use to pay other costs or satisfy debt obligations. The net sales figure is simply gross revenue, less the returns, allowances, and discounts.

The formula of Gross Margin= Net sales- COGS(cost of goods sold)

Companies use gross margin to measure how their production costs relate to their revenues. For example, if a company’s gross margin is falling, it may strive to slash labor costs or source cheaper suppliers of materials. Alternatively, it may decide to increase prices, as a revenue increasing measure. Gross profit margins can also be used to measure company efficiency or to compare two companies of different market capitalizations.

Difference between Gross Profit and Net Profit- While gross margin focuses solely on the relationship between revenue and COGS, the net profit margin takes all of a business’s expenses into account. When calculating net profit margins, businesses subtract their COGS, as well as ancillary expenses such as product distribution, miscellaneous operating expenses, and taxes.

Junk bonds or High Yield Bonds are bonds that carry a higher risk of default than most bonds issued by corporations and governments. A bond is a debt or promises to pay investors interest payments and the return of invested principal in exchange for buying the bond. Junk bonds represent bonds issued by companies that are struggling financially and have a high risk of defaulting or not paying their interest payments or repaying the principal to investors.

Companies that issue junk bonds are typically start-ups or companies that are struggling financially. Junk bonds carry risk since investors are unsure whether they’ll be repaid their principal and earn regular interest payments. As a result, junk bonds pay a higher yield than their safer counterparts to help compensate investors for the added level of risk. Companies are willing to pay the high yield because they need to attract investors to fund their operations.

Rating of the bonds by Standard and Poor’s include- AAA (excellent), AA (very good), A (good), BBB (adequate), BB and B (junk), CCC (currently vulnerable to non payment), CC (highly vulnerable to non payment), D (in Default)

Vetting is the process of thoroughly investigating an individual, company, or other entity before making a decision to go forward with a joint project. A background review is a vetting process.

Some of the examples of vetting

• A board of directors will thoroughly vet a candidate for company CEO or another top management position.
• An investment adviser will vet a potential investment for its track record, management quality, and growth potential before recommending it to clients.

What vetting entails?

A vetting process might begin with a confirmation of facts. Is the job candidate’s resume accurate in describing all the skills and experience that are claimed? Does the contractor called Worldwide Shipping have actual experience shipping worldwide? The process continues with the verification of information. Every degree, award or certification claimed by a candidate is checked for accuracy. Whether it is a person, a company, or an investment that is being vetted, the process gets deeper, and potentially more intrusive, from there. Credit history checks, criminal background checks, and personal interviews with past and current associates all are fair game in the vetting process.

Heavy reliance on vetting by governments can raise concern on high costs as well as long delays.