Section 3 · Chart Reading
Doji & Indecision Candles
When buyers and sellers reach a standoff
The Doji: Open Equals Close
A doji forms when a candle's opening price and closing price are virtually identical, creating a cross or plus-sign shape. This tells you that despite all the back-and-forth during the session, neither bulls nor bears won. Dojis are indecision candles — on their own they are neutral, but in context they can be powerful signals. The gravestone doji has a long upper wick and no lower wick: price rallied hard but sellers pushed it all the way back down, making it a bearish signal at the top of a trend. The dragonfly doji is the mirror image — a long lower wick and no upper wick: price sold off hard but buyers reclaimed everything, making it a bullish signal at the bottom of a trend. Neither pattern means much in isolation; the trend leading into the doji is everything.
3 things to know
Doji means open price = close price — neither side won the session
Gravestone doji: long upper wick, no lower wick — bearish warning at highs
Dragonfly doji: long lower wick, no upper wick — bullish reversal at lows
Dive Deeper
Key vocabulary — tap each card
Practice
Doji Candle Types
Doji shapes and their typical market implications
Did you know?
The word "doji" comes from Japanese and loosely translates to "the same thing" — reflecting that open and close prices ended at the same level after all the session's movement.