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Doji Pattern
A candlestick with nearly equal open and close prices, indicating market indecision and potential reversal.
Quick Answer
A candlestick with nearly equal open and close prices, indicating market indecision and potential reversal.
What Is the Doji Pattern?
The Doji is a candlestick pattern where the opening and closing prices are virtually equal, creating a cross or plus sign shape. It represents a standoff between buyers and sellers and often appears at turning points. Doji patterns are more significant when they appear after extended trends or at key support/resistance levels.
How the Doji Forms
- 1Open and close prices are nearly identical
- 2Wicks can vary in length
- 3Forms after an extended move
- 4Appears at significant price levels
How to Confirm the Pattern
✓Located at support/resistance
✓Following candle confirms direction
✓Volume context supports reversal
✓Other technical confluence
Best Timeframes for Doji
4HDailyWeekly
How to Trade the Doji
- →Identify potential reversal points
- →Signal indecision in the market
- →Combine with other patterns
- →Alert to potential trend change
Common Mistakes to Avoid
✕Trading doji in isolation
✕Ignoring the trend context
✕Not waiting for confirmation candle
✕Overtrading every doji signal
Detect Doji Automatically
VaultCharts automatically detects Doji patterns on your charts. No manual analysis needed - the pattern is highlighted with entry zones and targets.