Technical Glossary / Candlestick Patterns
Doji
A candle whose open and close are almost the same, so the body is only a line.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
A doji prints when the period opens and closes at nearly the same price. Buyers and sellers finished in a draw. The wicks show where price travelled and was rejected.
How to identify it
A body so small it looks like a horizontal tick, with wicks above, below, or both. Dragonfly, gravestone, and long-legged doji are named versions of the wick layout.
Bullish reading
After a decline, a doji can mark a pause. It is a bullish clue only with a later close above the doji high, or when it is a dragonfly sitting on support.
Bearish reading
After a rally, a doji can mark exhaustion. A gravestone at resistance is the clearer bearish form. Confirmation is a later close under the doji low.
How traders use it
Treat it as a warning to tighten a plan, not as an entry by itself. Note the level, the prior trend, and the next bar.
Common mistakes
Calling every small body a reversal. In a strong trend a doji is often a rest, and the trend then continues.
Limitations
Doji are common on short timeframes. Without a level and a prior swing, the shape has little meaning.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.