Doji

A doji has a very small or nonexistent body because price closed near where it opened. The long wicks show that both buyers and sellers pushed price during the period, but neither side won by the close. Dojis are indecision candles — not automatic reversal signals.

Context determines meaning. A doji after a strong uptrend at resistance suggests buyers lost momentum. A doji after a sharp drop at support suggests sellers exhausted. A doji in the middle of a range usually means nothing — balance in balance is noise.

Types include the long-legged doji (large wicks both sides), dragonfly doji (long lower wick, close near high), and gravestone doji (long upper wick, close near low). Dragonfly and gravestone dojis at extremes carry more directional hint than generic small dojis.

Manual traders wait for confirmation. A doji alone does not justify entry. Look for the next candle: a strong bullish close above the doji high after support dragonfly supports longs; a bearish close below gravestone doji low supports shorts.

On higher timeframes, a daily doji at a major level matters more than five 1-minute dojis in chop. Scale your reaction to the timeframe and the quality of the location.