What Is Doji Candlestick?
A Doji candle has open and close prices essentially equal, producing a candle with a tiny or non-existent body and visible wicks on either side. It signals that neither buyers nor sellers won the session — a battle that ended in a draw.
Dojis are most meaningful at extremes (top of a rally, bottom of a decline) where they suggest the prevailing trend is losing momentum. A Doji in the middle of a clear trend is much less informative.
Variations include the Long-Legged Doji (long wicks), Gravestone Doji (long upper wick, no lower wick — bearish), and Dragonfly Doji (long lower wick, no upper wick — bullish).
Reality check: Dojis alone don't predict reversals. They flag potential turning points that need confirmation from the next candle's direction.
Related terms
- Hammer Candlestick — A bullish reversal candle with a small body and long lower wick, appearing at the bottom of declines.
- Engulfing Pattern — A two-candle reversal pattern where the second candle fully engulfs the first.
- Candlestick Chart — Price chart format where each candle shows open, high, low, and close for a period.