Candlestick Formation: Doji

The Doji is an indecision candlestick formation, which can transform into a Reversal formation if accompanied by confirmation candles.

The Doji is a small candle with the shape of a small cross +. It can be with long distance between its high and low - making it a Long-Legged Doji, or with small distance. It is a candle of a strong struggle between buyers and sellers, as the open and close of the candle are equal - no side has won ths battle. It symbolizes an equilibrium at the markets, a very gentle one that may breakout in a quick movement to a side.

It is important to note that a Doji by itself doesn't signal reversal, merely indecision and weekness of trend. Only if accompanied by a confirmation candle to the opposite trend, it can signal reversal.

A Doji that is far from its predecessor candle and its successor is called a Star. The Doji is also a part of several candlestick formations: Evening Star, Morning Star, Shooting Star, and more. Articles will be written on each of these formations.