Doji Candlestick Explained
A doji is a candle that opens and closes at almost the same price, leaving a tiny body. It signals indecision — a balance between buyers and sellers.
What a doji tells you
Because the open and close are nearly equal, a doji shows that neither side won the session. After a strong trend, a doji can mark exhaustion and a possible turn; inside a range it is just noise.
Context is everything. A doji at a key support or resistance level or after a liquidity sweep is far more meaningful than one in the middle of a chop.
Types of doji
A dragonfly doji (long lower wick, no upper) hints at rejection of lower prices — potentially bullish. A gravestone doji (long upper wick, no lower) hints at rejection of higher prices — potentially bearish. A long-legged doji has wicks both ways, maximum indecision.
Always wait for the next candle to confirm the direction. A doji is a pause, not a signal on its own.
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Play Chart Bound free → Try today's Call the Candle →Frequently asked questions
What does a doji candlestick mean?
It means indecision: the open and close are almost equal, so buyers and sellers finished the session roughly balanced. Its significance depends on where it appears.
Is a doji bullish or bearish?
Neither by itself. A dragonfly doji leans bullish and a gravestone doji leans bearish, but a doji needs confirmation from the next candle and its location.
What is the difference between a dragonfly and gravestone doji?
A dragonfly doji has a long lower wick and no upper wick (rejection of lows); a gravestone doji has a long upper wick and no lower wick (rejection of highs).