A doji candle pattern occurs when the opening and closing price is the same (or close to it), so it has no body (or a very small/thin body).
Doji candlesticks signifying indecision between bulls and bears, and the previous momentum has stalled.
There are different varieties of doji candles (such as the gravestone, dragonfly, and long-legged doji) based on where the open and close are in relation to the entire candle range.
When interpreting doji candlestick patterm, traders must be aware of the market structure and context of the chart pattern. This is particularly true for doji candlesticks as they are a commonly found pattern, and therefore we must only be using them when they are significant in the market context. In the case of a doji candle, they are really only significant after an extended move into a support or resistance area, either to the upside for a short setup, or to the downside for a long setup.
chart examples coming soon….
