Doji
Reversal1 candleA neutral candlestick pattern where open and close prices are nearly equal, indicating market indecision.
Visual Example
When It Usually Fails
This is what most courses don't teach you. These conditions turn textbook patterns into losing trades.
- Appears in a ranging/choppy market (indecision is normal)
- No clear prior trend to reverse
- Forms in the middle of a trend continuation
- No confirmation candle follows
Why Doji Often Fails (61%)
This pattern doesn't fail because of the pattern itself. It fails when context is wrong.
Location
Doji appears mid-range with no structure nearby
Example: Doji forms in the middle of a price range, far from support or resistance. No clear level to reverse from. Just noise.
Market Regime
Doji in ranging/choppy market
Example: Market has been consolidating for days. Doji signals indecision, but indecision is already the regime. No reversal coming.
Order Flow
Decreasing volume on doji candle
Example: Doji appears but volume is 50% below average. No genuine buyer-seller battle. Market is just quiet, not reversing.
Key insight: The same Doji that fails 61% of the time in wrong context can succeed 68%+ when all three factors align.
When It Usually Works
- Appears after an extended trend (exhaustion signal)
- Forms at key support or resistance level
- Followed by a strong directional candle
- Volume spike indicates genuine indecision
Common Traps
Doji in consolidation
Indecision is the norm, not a signal
Multiple dojis
Uncertainty, not reversal setup
Small timeframe doji
Noise, not signal
Historical Statistics
Based on analysis of historical data. Past performance does not guarantee future results.
Note: These statistics are for educational purposes. Individual results vary based on market conditions, timing, and risk management.
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Variants (4)
Standard Doji
Small body with roughly equal upper and lower shadows.
Treating every doji as a reversal signal regardless of context.
Can indicate indecision at key levels; often noise in choppy markets.
Long-Legged Doji
Very long upper and lower shadows with tiny body in the middle.
Assuming long wicks always mean strong rejection.
Shows extreme indecision; more significant after extended moves at key levels.
Key Concepts:
Dragonfly Doji
Also known as: firefly doji
Long lower shadow, no upper shadow, open/close at session high.
Treating as automatic bullish reversal without confirming location.
Potentially meaningful at support after downtrend; noise in ranges.
Key Concepts:
Gravestone Doji
Also known as: graveyard doji
Long upper shadow, no lower shadow, open/close at session low.
Treating as automatic bearish reversal without confirming location.
Potentially meaningful at resistance after uptrend; noise in ranges.
Key Concepts:
Training Note: Pattern variants are educational classifications. Real-world price action rarely matches textbook definitions exactly. Always evaluate patterns in context of regime, location, and volume.
Practice This Pattern
Build intuition through daily training with real Doji scenarios.