Key Takeaways
Doji
Open and close are virtually the same, creating a cross or plus sign. Signals market indecision and potential reversal.
Market Psychology
Neither buyers nor sellers could gain control. Market is at a point of equilibrium and potential change.
Candle Structure
Trading Setup Example
Entry, stop loss, and take profit levels.
Always wait for pattern confirmation before entering a trade.
Where This Pattern Appears
Trend context and market position.
Signals market indecision - wait for confirmation.
How to Identify
Open and close at or very near the same price
Small or no real body
Can have upper and lower shadows of varying lengths
Appears after a trend
Confirmation Signals
Trading Strategy
š„ Entry
Wait for next candle confirmation before trading
š Stop Loss
Place stop beyond the doji range
šÆ Take Profit
Target recent swing high/low based on direction
āļø Risk/Reward
1:1.5
Common Mistakes to Avoid
Pro Tips
Best Timeframes
Pattern Variations
Educational Disclaimer
This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.
Frequently Asked Questions
Related Learning Resources
Related Patterns
Long-Legged Doji
Doji with very long upper and lower shadows, showing extreme indecision with wide price swings but no resolution.
Spinning Top
Small body with upper and lower shadows that are longer than the body. Shows indecision but less significant than doji.
High Wave Candle
Very long upper and lower shadows with a small body. Similar to long-legged doji but with a small body instead of none.