What is Doji pattern?

 Doji pattern.

The Doji is a single-candlestick pattern in technical analysis that represents indecision in the market. It occurs when the opening and closing prices are very close or equal, resulting in a very small or nonexistent body.

🟡 What a Doji Tells You

  • Neither buyers nor sellers gain full control during the candle's time frame.

  • It can signal a potential reversal, pause, or continuation depending on the context (i.e., trend direction, volume, and surrounding candles).

📊 Appearance

A typical Doji looks like a plus sign, cross, or inverted T, depending on the length of the wicks.

Example.1:


🔍 Types of Doji Candles

TypeDescriptionImplication
Standard DojiOpen = Close with upper and lower wicksGeneral indecision
Long-legged DojiLong wicks above and belowStrong indecision
Dragonfly DojiOpen = Close at the top, long lower wickPossible bullish reversal
Gravestone DojiOpen = Close at the bottom, long upper wickPossible bearish reversal
Four-price DojiOpen = High = Low = CloseVery rare, extremely quiet trading

✅ Interpretation

  • In an uptrend: A Doji may signal bull exhaustion → possible reversal or pullback.

  • In a downtrend: A Doji can indicate seller fatigue → possible bullish reversal.

  • On its own, a Doji is not a strong signal — it must be confirmed by other candles (e.g., Morning Star, Engulfing) or indicators (e.g., RSI, MACD).

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