Doji
NeutralReliability: LowAlso called · indecision candle, cross candle, doji candlestick
A candle where open and close are nearly identical. Buyers and sellers are evenly matched.
How to spot it
- There is almost no body
- The upper and lower wicks vary by situation
Why this shape forms
Open and close are nearly the same. A whole session of fighting with no winner, so it signals hesitation rather than direction.
Where it actually means something
After a long trend it matters. In the middle of a range it is just a quiet session.
What else to check
The doji itself is not the signal; the next candle leaving its range is. Using the doji high and low as the trigger lines is the practical version.
This means you're wrong
On its own it is not a directional signal. The next candle gives the direction.
The mistake beginners make
Being certain of a reversal from one doji. It only marks hesitation.
Easy to confuse with
Thin markets and dead hours produce doji constantly. A doji made of no liquidity is an absence of participants, not a psychological standoff.
Real examples from the community
Patterns are probabilistic tendencies, not guarantees. This is not investment advice.