02/25/2023
The horizontal line of the Doji shows that the open and close occurred at the same
level.
The vertical line of the Doji represents the total trading range of the timeframe.
Meaning
The shape of the Doji signifies indecision between buyers and sellers.
When you see a Doji candlestick pattern, you know that the session closed very near to where it opened, which is why the candle doesn’t have a body.
Indecision reigns, as neither the buyers and sellers are in control.
A “tug-of-war” is occurring, during which neither party is dominant.
Although the price may have fluctuated throughout the session, it was driven back to its original, opening price.
This moment of indecision often signals a trend reversal.
A Doji is not as significant if the market is not clearly trending, as sideways or choppy markets are indicative of indecision.
If the Doji forms in an uptrend, this is normally seen as significant, since it signals that the buyers are losing conviction.
If the Doji forms in a downtrend, this is normally seen as significant, since it signals that the sellers are losing conviction
