Glossary · Candlestick & Chart Patterns
Doji
A candle with nearly equal open and close, signaling indecision.
A doji forms when open and close are nearly the same, so the body is a thin line with wicks on either side. It shows that buyers and sellers pushed price around but ended the period almost where they started — classic indecision.
A doji’s meaning depends on context. After a long uptrend it may hint at hesitation among buyers; after a downtrend it may hint at seller exhaustion. Alone it is rarely enough; traders usually wait for the next candle’s confirmation.
Example
After five strong green days, a doji prints at the highs. The next day closes lower — some traders read the sequence as a short-term stall after the rally.
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