What a doji shows.
A doji opens and closes at almost the same price, showing that buyers and sellers ended the period in balance.
Main types.
- Standard doji: small body, wicks on both sides.
- Dragonfly doji: long lower wick, close near the high.
- Gravestone doji: long upper wick, close near the low.
- Long-legged doji: long wicks on both sides, high volatility indecision.
How to use it.
A doji only matters in context: after an extended move or at a key level. Wait for the next candle to confirm direction and place your stop beyond the doji's wick.
FAQ