Doji

A doji is a candlestick whose open and close are at or very near the same price, producing a candle with little or no body and, typically, wicks on one or both sides. It represents indecision: over the period, buyers and sellers fought to a draw, with price ending roughly where it began despite whatever range it traveled. Variants include the long-legged doji (long wicks both ways, maximum indecision), the dragonfly doji (long lower wick, sellers rejected), and the gravestone doji (long upper wick, buyers rejected).

For example, after a week of strong daily gains, Bitcoin prints a daily candle that opens at $66,000, ranges between $64,800 and $67,200, and closes at $66,050. That doji suggests the buying pressure that drove the rally has, for now, met equal selling — a possible pause or turning point.

Context determines meaning: a doji after an extended trend is a potential reversal warning, while dojis inside a sideways range are routine and carry little information. A common misconception is that a doji is itself a reversal signal; it only marks equilibrium, and most traders require confirmation from the next candle — for instance a strong close in the opposite direction of the prior trend — before acting on it.