Doji
NeutralAn indecision pattern where open and close are nearly equal, showing balance between buyers and sellers.
Pattern Visualization
How to Identify
- Open and close virtually identical
- Can have upper and lower wicks
- Context-dependent (trend matters)
- Signals potential reversal
Trading Tips
Don't trade on doji alone. Wait for directional confirmation. Strong after extended trends.
An indecision pattern where open and close are nearly equal, showing balance between buyers and sellers. The doji indicates uncertainty in the market as neither bulls nor bears were able to gain control during the session.
When to Trade
The doji is context-dependent and should never be traded in isolation. After an uptrend, it may signal a bearish reversal. After a downtrend, it can indicate a bullish reversal. Wait for the next candle to confirm direction before taking any position.
Key Characteristics
- Body: Virtually nonexistent (open equals close)
- Wicks: Can have long upper and/or lower shadows
- Context: Direction depends on preceding trend
- Confirmation: Requires next candle validation
Success Rate
With a 70% success probability, the doji is moderately reliable but requires careful interpretation. Its predictive power increases significantly when combined with other confirmation signals like volume spikes, support/resistance levels, or momentum indicators.
Variations
- Dragonfly Doji: Long lower wick, bullish reversal
- Gravestone Doji: Long upper wick, bearish reversal
- Long-Legged Doji: Long wicks both sides, extreme indecision