The Doji is one of the most important single-candle patterns. It forms when the opening and closing price are virtually the same, creating a cross or plus-sign shape. A Doji signals indecision — neither buyers nor sellers were able to gain control during that session.
What a Doji Looks Like
Four types of Doji patterns
Types of Doji
| Type | Shape | Signal |
|---|---|---|
| Standard Doji | Equal upper and lower wicks | General indecision |
| Long-legged Doji | Very long equal wicks | Strong indecision — major battle |
| Dragonfly Doji | Long lower wick, no upper wick | Bullish — buyers rejected the lows |
| Gravestone Doji | Long upper wick, no lower wick | Bearish — sellers rejected the highs |
How to Trade Doji
Doji after an uptrend (Reversal Signal):
A Doji appearing after several bullish candles signals that buying momentum is exhausted. Wait for the next candle to confirm — if it is bearish, consider exiting long positions.
Doji after a downtrend (Reversal Signal):
A Doji after a series of bearish candles signals that selling pressure is fading. Wait for a bullish confirmation candle before entering long.
A Doji appearing after several bullish candles signals that buying momentum is exhausted. Wait for the next candle to confirm — if it is bearish, consider exiting long positions.
Doji after a downtrend (Reversal Signal):
A Doji after a series of bearish candles signals that selling pressure is fading. Wait for a bullish confirmation candle before entering long.
A Doji alone is not a trading signal. Always wait for a confirmation candle in the direction you want to trade. A Doji at a major support or resistance level is far more significant than one in the middle of a trend.
Doji on NSE Charts
- Doji on NIFTY 50 weekly chart at all-time highs → Significant reversal warning
- Dragonfly Doji at major support on daily chart → High-probability long entry after confirmation
- Gravestone Doji after a strong rally on any NSE stock → Consider taking profits