Doji

Technical Analysis

A doji is a candlestick with a very small body where open and close are nearly equal, reflecting market indecision and a possible reversal.

What is a doji?

A doji is a candlestick where the opening and closing prices are virtually the same, giving the candle a very thin or cross-like body with wicks extending above and/or below it. The name comes from Japanese, where it originated as part of traditional candlestick charting. A doji shows that, over the period in question, buyers and sellers essentially fought to a draw — price moved during the period, but ended up almost exactly where it started.

Common types of doji

Standard doji — a small cross shape with relatively short wicks on both sides.
Long-legged doji — long wicks on both sides, showing significant price swings in both directions before settling back near the open.
Dragonfly doji — a long lower wick with little to no upper wick, showing sellers pushed price down but buyers fully recovered it by the close.
Gravestone doji — a long upper wick with little to no lower wick, the opposite scenario.

Example

If gold rallies strongly for several days and then prints a doji right at a resistance level, technical traders often read this as a sign the rally is losing steam, since neither buyers nor sellers were able to gain control during that period. This does not guarantee a reversal, but it is frequently treated as an early warning sign worth watching for confirmation on the next candle.

Doji vs. other candlesticks

Compared with a strong bullish or bearish candle (where the body dominates the range), a doji’s small body signals hesitation rather than conviction. Traders generally look for a doji to occur after an extended trend, or right at a key support/resistance level, for it to carry more significance — a doji in a quiet, range-bound market is far less meaningful.

Why it matters

A doji is one of the most recognizable single-candle signals in candlestick pattern analysis, useful for spotting moments of indecision that can precede a trend pause or reversal. Like all candlestick signals, it should be confirmed with follow-through price action rather than traded in isolation, since indecision does not always resolve into a reversal.