What is the Doji Candlestick Pattern? The Doji is a single-candle pattern that forms when the opening and closing prices are nearly the same, indicating market indecision between buyers and sellers
Candle Formation – Balance Between Buyers and Sellers The candle has a very small or no real body with upper and lower shadows. This structure reflects equal buying and selling pressure during the trading session
Market Psychology Behind the Pattern The Doji suggests that neither buyers nor sellers gain control of price movement. It often signals a potential trend reversal or pause when it appears after a strong trend
The Doji is considered a neutral pattern but becomes more reliable when it forms near support or resistance levels or after a prolonged trend.
Confirmation & Volume Traders usually wait for the next candle to confirm direction. A strong bullish or bearish candle after a Doji, supported by higher volume, strengthens the trading signal