Candles
Doji
A doji is a candle whose open and close are nearly equal, producing a tiny body that often signals indecision rather than a clear directional win for buyers or sellers.
A doji forms when the open and close of a period finish at almost the same price, leaving a very small or nearly invisible body. The wicks can still be long or short. What defines the doji is the balance between open and close, not the total range. That balance is often read as indecision: neither buyers nor sellers managed to hold a meaningful advantage by the close. In educational chart reading, a doji is a pause mark, not a trophy for either side.
Not every tiny body deserves the same weight. A doji that appears after a long, one-sided trend attracts more attention than a doji buried inside a quiet range, because the market has already shown strong directional momentum and is now hesitating. Even then, hesitation is not the same as reversal. Price can consolidate with several dojis and then continue in the original direction. Treating the first doji as an automatic turn is a common beginner mistake.
There are named variations—long-legged doji, dragonfly, gravestone—based on wick placement. A long lower wick with open and close near the high (dragonfly-like) shows rejection of lower prices during the period. A long upper wick with open and close near the low (gravestone-like) shows rejection of higher prices. These labels help you describe location of the close, but they still require confirmation from subsequent price action. ChartsQuest treats names as vocabulary aids, not guarantees.
Risk framing belongs beside every doji discussion. Because open and close are nearly equal, the candle alone does not tell you where the next impulse will go. If you use a doji as part of a practice scenario, define what would invalidate the idea—for example, a close beyond the doji's high or low—and remember that stop placement and position sizing are separate risk skills. Educational value comes from noticing balance and asking better questions, not from assuming the candle predicts the next close.
Example
After eight rising daily candles in a stock index ETF, a doji prints with a small body near the middle of a wide range and long wicks on both sides. The next day opens flat and drifts sideways. The doji marked a pause after a climb; it did not by itself mark a top. Only if price later closes below the doji low and prior swing support would a stronger case for trend damage appear.
What it is not
A doji is not a guaranteed reversal signal, a timed entry cue, or proof that traders are about to change direction. It mainly shows that open and close nearly matched for that period.
Frequently asked questions
How close must open and close be to count as a doji?
There is no universal tick threshold. In practice, the body should be tiny relative to the candle's total range and to nearby candles. If the body is clearly directional, it is not a doji.
Does a doji mean the trend is over?
Not necessarily. A doji can mean a pause, a brief balance, or the start of a larger turn. You need following candles, levels, and structure to evaluate which story fits.
What is the difference between a doji and a spinning top?
Both have small bodies. A spinning top usually still has a visible body and relatively balanced wicks. A doji's open and close are even closer—often almost identical.
Should I trade every doji I see?
ChartsQuest does not recommend trading signals. For learning, study dojis in context and write what would confirm or invalidate a hypothesis instead of acting on the candle alone.
Términos relacionados
Candlestick
A candlestick is a single bar that shows open, high, low, and close for a time period so you can read price movement at a glance.
Shooting star
A shooting star is a candle with a small body near the low of its range and a long upper wick, often studied after an advance as a sign that higher prices were rejected.
Hammer
A hammer is a candle with a small body near the top of its range and a long lower wick, often watched after a decline as a possible sign that sellers were rejected.
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