Doji

The Doji candlestick pattern is formed when a candle’s open and close prices are nearly identical, resulting in a small or nonexistent body and wicks that extend on both sides. This balanced candle visually represents a market in equilibrium, where neither buyers nor sellers have enough strength to take control. Dojis can appear within ongoing trends, where they often signal potential turning points. Because Dojis suggest indecision, they’re frequently observed at the end of trends, hinting that a reversal or pause may be on the horizon.

This candlestick pattern is a fundamental tool in technical analysis, helping traders understand the psychological battle between buyers and sellers. However, interpreting Dojis correctly requires context and experience, especially in identifying trend shifts. For those looking to deepen their understanding of candlestick patterns like the Doji, The Chart Guys provide comprehensive resources, from beginner tutorials to advanced pattern analysis, to sharpen your trading skills.