Doji
A doji is a candle with open and close nearly equal, showing indecision and potential reversal at key levels.
A doji is a candle with open and close nearly equal, showing indecision. At a key level after a strong move it warns of stalling momentum, but needs the next candle to confirm.
A doji is a candlestick where the open and close are almost identical, leaving a tiny or absent body and visible wicks. It shows the session was a tug-of-war with no decisive winner. A doji alone means little, but a doji at a significant support or resistance level, especially after a strong move, warns that momentum is stalling and a reversal or pause may follow. It needs confirmation from the next candle.
How It Works
- Tiny body, wicks in both directions
- Common at trend turning points and range boundaries
- Signals indecision, not direction
Trading Tips
Only trade dojis at meaningful levels, never mid-range
The candle after the doji confirms the reversal
A string of dojis signals a compression that often precedes a breakout
Related Terms
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