A doji has an open and close that are (almost) the same. The body is a thin line. Translation: nobody won.
| Doji | Shape | Meaning |
|---|---|---|
| Standard | Cross shape | Indecision |
| Long-legged | Very long wicks both ways | A big fight with no winner |
| Dragonfly | Long lower wick, no upper | Sellers pushed down, buyers took it all back |
| Gravestone | Long upper wick, no lower | Buyers pushed up, sellers took it all back |
How to use a doji
A doji after a long trend says the trend is losing energy. It's a yellow light, not a red one. Wait for the next candle to confirm the direction.
Wick says
A doji is the market saying "hmm, let me think about it." Respect the thinking. Don't trade the shrug itself.
Rookie mistake
Shorting every doji in an uptrend. Strong trends print dojis all the time and keep going.
Key takeaways
- Doji = open ≈ close = indecision.
- Dragonfly at support and gravestone at resistance are the most useful.
- Always wait for the next candle to confirm.