Courses / Candlestick Patterns Masterclass

The Doji

A candle with almost no body signals indecision. Learn the four types and how to use them.

A doji forms when open and close are nearly equal. It shows buyers and sellers balanced for that period. Variants include the standard doji, long-legged doji, dragonfly (long lower wick) and gravestone (long upper wick).

A doji after a long trend can warn that momentum is fading. A doji inside a tight range means very little. Wait for the next candle to show which side wins.

Do not trade a doji by itself. Combine it with a level, such as a doji at resistance after a strong rally, then wait for a confirming candle.

Key takeaways

• Doji = indecision, not a reversal by itself
• Dragonfly at support and gravestone at resistance carry more weight
• Confirmation from the next candle is essential

Quiz

• A doji has: Answer: Almost no body. Open and close are nearly the same.
• A gravestone doji has: Answer: A long upper wick and close near the low. It shows price rejected from the highs.
• The best way to trade a doji is to: Answer: Wait for confirmation at a level. Confirmation and location make it useful.

Educational content, not financial advice.