Candlestick patterns
Doji candlestick
A candle that opens and closes at almost the same price, with wicks on one or both sides: neither buyers nor sellers won the period.
Why it works
After a strong move, a doji shows the push has run out of energy. It is indecision, and indecision at an extreme often comes before a pullback or a reversal.
How to use it
Do not trade the doji alone. Wait for the next candle to confirm the direction and combine it with a level (support, resistance, liquidity) and the higher-timeframe trend.
The typical mistake
Selling every doji in an uptrend. In the middle of a range or a calm trend, a doji means nothing.
FAQ
What is Doji in trading?
A candle that opens and closes at almost the same price, with wicks on one or both sides: neither buyers nor sellers won the period.
How do you trade Doji?
Do not trade the doji alone. Wait for the next candle to confirm the direction and combine it with a level (support, resistance, liquidity) and the higher-timeframe trend.