Single candle, indecision

Doji

The Doji is a single candle with virtually no body (open and close are nearly equal). It signals indecision in the market. The Doji itself is neutral; its meaning depends entirely on where it forms.

Neutral (context-dependent)

Bias

Strong at levels

Reliability

After trend, at key support / resistance

Best context

4H, Daily, Weekly

Timeframe

What is the Doji?

A Doji has a real body that is so small (the open and close are within a few pips of each other) that the candle looks like a cross or plus sign. The wicks can be any length.

Doji means 'simultaneous' or 'at the same time' in Japanese — referring to the open and close happening at the same price. The pattern reflects perfect equilibrium between buyers and sellers during the session. Neither side won.

How to identify a Doji

Two requirements:

1. The body is so small that it appears as a horizontal line or near-line on the chart. 2. The candle's open and close are within ~10% of the candle's total range.

Wick length is not constrained for the standard Doji. Variants with specific wick configurations have their own names: Dragonfly Doji (long lower wick, no upper), Gravestone Doji (long upper wick, no lower), Long-Legged Doji (long wicks on both sides), Four-Price Doji (no wicks, extremely rare).

How to trade the Doji

The Doji itself is not a trade signal — it is a warning. How to use it:

At trend tops / bottoms: A Doji after an extended trend signals momentum exhaustion. Wait for the next candle to confirm direction. Close above the Doji's high = bullish continuation; close below the low = bearish reversal (or vice versa for downtrends).

At horizontal levels: A Doji at major support or resistance is a high-conviction rejection signal. Trade the direction of the next candle's close.

In mid-range: Skip. A Doji in chop is just chop; it carries no signal.

The Doji is a 'pause-and-reverse' candle. Without context (level + prior trend), it is meaningless. With context, it is one of the cleanest reversal warnings on the chart.

More patterns and definitions in the forex glossary, or see them stacked on real charts in the trading blog.

Doji FAQ

Is a Doji bullish or bearish?

Neither inherently. The Doji is a neutral indecision candle. Its meaning depends entirely on context: at trend tops it warns of bearish reversal; at trend bottoms it warns of bullish reversal; in mid-range it is meaningless.

What are the main Doji variants?

Standard Doji (equal open/close, any wicks), Dragonfly Doji (long lower wick, no upper — bullish at lows), Gravestone Doji (long upper wick, no lower — bearish at highs), Long-Legged Doji (long wicks both sides — strong indecision), Four-Price Doji (no wicks — extremely rare).

How exact does the open and close need to be?

Within ~10% of the candle's total range qualifies as a Doji on most platforms. Perfectly identical open/close is rare; pure-cross Dojis are the visual ideal.

What timeframe is best for Doji?

Higher timeframes (4H, Daily, Weekly) produce more reliable Dojis. On 1m / 5m, Dojis form constantly and most are just noise from low volatility.

Should I trade a Doji alone?

No. The Doji is a warning, not a signal. Wait for the next candle to break the Doji's range (close above or below) to confirm direction. Pair with horizontal levels for higher conviction.

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