Definition
Doji forms when a security's open and close are essentially equal, creating a cross or plus sign shape. It signals indecision and potential reversal, especially after a strong trend. Variations include long-legged doji, dragonfly doji, and gravestone doji.
Example
After a strong uptrend, a doji forms where the stock opens at $50, trades between $48-$52, and closes at $50.05. This indecision after buying pressure may precede a reversal.
FAQ
What is Doji Candlestick?
A candlestick where open and close are virtually equal, showing indecision.
Why is Doji Candlestick important?
Doji Candlestick helps investors evaluate candlestick patterns and make more informed decisions.