A candlestick where the open and close are almost equal — indecision between buyers and sellers.
A doji has a tiny body or no body at all. The open and close are the same (or within a few pipettes). That means buyers and sellers fought to a standstill during the period. The wicks can be long, short, or asymmetrical — what matters is that nobody won.
Dojis at key levels are meaningful. A doji at major resistance after a rally says "the buyers couldn't push through and the sellers stepped in." A doji at major support after a selloff says the opposite. Dojis in the middle of nowhere are noise.
There are variants: dragonfly doji (long lower wick, no upper — bullish), gravestone doji (long upper wick, no lower — bearish), and long-legged doji (big wicks both sides — maximum indecision).
Real trade example
On Mar 2024, USD/JPY printed a gravestone doji at the 152.00 resistance (a multi-decade high) before reversing 300 pips. Textbook top signal.
Frequently asked about doji
What is a doji in trading?+
A candlestick where the open and close are almost equal — indecision between buyers and sellers.
When will I see doji used in real trading?+
After strong moves, at key support and resistance levels, before major news events.
What is the most common mistake traders make with doji?+
Trading a doji in isolation. A doji alone is nothing — it's only meaningful at a significant level. And always wait for the NEXT candle's close to confirm.
What do experienced traders know about doji that beginners don't?+
If a doji forms at resistance and the following candle opens lower and closes well below the doji's body, that's a high-probability short entry.