The Doji — indecision
Open meets close. The market holds its breath.
What you see
Open and close are (nearly) identical, so the body is a thin line — the wicks show both sides fought to a draw.
What it means
Indecision. On its own it predicts nothing — what matters is which side breaks out next.
How it is traded
Don't trade the doji — trade the break: long above its high, short below its low, stop on the other side.
What comes next
Nothing on its own — the doji is the pause before the break. Expect a decisive candle through its high or low; the upside resolution is drawn here, and the same logic mirrors down.
How it fails
In low volume or tight ranges dojis are everywhere and mean nothing. Long-legged dojis at extremes are the meaningful ones.
Quick check
A doji prints at a major resistance level after a long rally. Correct read?
- Momentum is stalling here — watch which side breaks
- Buy immediately — dojis are bullish
- The trend is guaranteed to reverse
- Dojis only matter on Mondays
A doji at an extreme is a warning light, not a signal. The trade is the break of the doji, not the candle itself.
This lesson is part of the free learning path at /academy/ — progress, XP and boss games live there.
Educational content only — not financial advice.