Candlestick patterns
The doji
3 min
A doji is a candle where the open and close are virtually equal, leaving a tiny or non-existent body — a cross or plus shape. It is the purest signal of indecision.
What it shows
Buyers and sellers fought to a standstill: price may have ranged widely (long wicks) but finished right where it started. Neither side won the period.
The main variants
- Long-legged doji — long wicks on both sides; strong indecision and volatility.
- Dragonfly doji — long lower wick, no upper; buyers rejected lower prices (mildly bullish at a bottom).
- Gravestone doji — long upper wick, no lower; sellers rejected higher prices (mildly bearish at a top).
How to use it and the limitation
A doji's power is all about location. After a long, extended trend, a doji warns that the prevailing momentum has stalled — a possible turning point. In a quiet, choppy market, dojis appear constantly and mean almost nothing.
So a doji is a pause, not a direction. It says "the trend is hesitating", not "the trend will reverse". Always wait for the following candle to resolve which way the indecision breaks before acting.
This content is for educational and informational purposes only and is not investment, financial, tax or legal advice. Trading and investing carry risk, including the possible loss of capital. Any performance shown by third-party tools is hypothetical and not a promise of future results. Do your own research and consider professional advice before making any decision.