# Doji > A doji forms when open and close are nearly equal, showing indecision. Learn the doji types, dragonfly and gravestone, what they mean and how to trade them. Source: https://learn.tradelabsai.com/candlesticks/doji/ Track: Candlesticks · Level: Beginner · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "Doji", https://learn.tradelabsai.com/candlesticks/doji/ A doji is a candle where the open and close are at or very near the same price, producing a tiny body that looks like a cross or a plus sign. It shows that buyers and sellers fought during the period and neither won. On its own, a doji signals indecision. In the right location, such as after a strong trend or at a key level, it can warn that the current move is losing momentum. ## Types of doji *Figure: The horizontal bar marks where open and close are nearly equal.* | Type | Shape | Meaning | |---|---|---| | Standard doji | Small cross, short wicks | Indecision | | Long-legged doji | Long wicks on both sides | Strong fight, no winner; high uncertainty | | Dragonfly doji | Open and close at the high, long lower wick | Sellers pushed down, buyers drove it back up; often bullish at support | | Gravestone doji | Open and close at the low, long upper wick | Buyers pushed up, sellers drove it back down; often bearish at resistance | ## What a doji means in context A doji is only as meaningful as its location: - **After a strong uptrend:** buyers could not continue pushing higher. A potential warning of a pause or reversal. - **After a strong downtrend:** sellers lost momentum. - **At support or resistance:** indecision exactly where a reaction is expected adds weight. See [Support and Resistance](https://learn.tradelabsai.com/price-action/support-and-resistance/). - **In the middle of a range:** usually meaningless; ranges are full of indecision candles. **Example: A doji at resistance** A stock rallies for five days into a resistance zone at $88. On the sixth day, it opens at $87.60, trades up to $88.90 and down to $86.80, and closes at $87.62. A long-legged doji right at resistance after a strong run signals that buyers' momentum has stalled. The next day, a red candle closes below the doji's low at $86.80, confirming sellers have taken over. ## Confirmation is essential A doji says "pause", not "reverse". Traders usually wait for the next candle: - **Bearish confirmation** after an uptrend doji: the next candle closes below the doji's low. - **Bullish confirmation** after a downtrend doji: the next candle closes above the doji's high. Without confirmation, many doji are followed by trend continuation. Doji often form part of three candle patterns such as the morning and evening star. See [Morning Star and Evening Star](https://learn.tradelabsai.com/candlesticks/morning-star-and-evening-star/). ## Trading a doji 1. **Check location:** trend extreme or key level, not mid range. 2. **Wait for confirmation** by the next candle. 3. **Enter** on the confirmation candle's close or the break of the doji's high or low. 4. **Stop** beyond the doji's extreme: above the high for a bearish trade, below the low for a bullish one. 5. **Target** the next support or resistance level. ## How doji differ by market In stocks, doji are often defined using the body as a tiny percentage of the range, such as under 5% to 10%. In 24 hour markets like crypto and forex, where each candle's open is the previous close, exact doji are common on low timeframes and carry less weight. Focus on daily and higher timeframes for more meaningful signals. ## Common mistakes - **Trading every doji** regardless of location. - **Entering before confirmation.** - **Ignoring the strength of the trend:** in powerful trends, doji are often brief pauses. ## Frequently asked questions ### What does a doji candle mean? Indecision: buyers and sellers ended the period roughly where they started. Its significance depends on where it appears. ### Is a doji bullish or bearish? Neither by itself. A dragonfly doji at support leans bullish and a gravestone doji at resistance leans bearish, but confirmation from the next candle matters. ### How reliable is a doji? On its own, not very. It becomes more useful at key levels, after strong trends and with a confirming candle. Next, learn two candles with long lower wicks: the [Hammer and Hanging Man](https://learn.tradelabsai.com/candlesticks/hammer-and-hanging-man/). ## Continue learning - Next lesson: [Hammer and Hanging Man](https://learn.tradelabsai.com/candlesticks/hammer-and-hanging-man/) - Previous lesson: [Momentum Candles](https://learn.tradelabsai.com/candlesticks/momentum-candles/) - Related: [Momentum Candles](https://learn.tradelabsai.com/candlesticks/momentum-candles/): Momentum candles have large bodies and small wicks, showing one side in control. Learn to spot them, what they signal at key levels and how to trade them. - Related: [How to Read Candlesticks](https://learn.tradelabsai.com/candlesticks/how-to-read-candlesticks/): Learn to read candlestick charts: open, high, low and close, bodies and wicks, timeframes, and what a candle tells you about buyers and sellers. - Related: [Spinning Top](https://learn.tradelabsai.com/candlesticks/spinning-top/): A spinning top has a small body with wicks on both sides, showing indecision. Learn what it means after trends, in ranges and how traders use it for timing. - Related: [Hammer and Hanging Man](https://learn.tradelabsai.com/candlesticks/hammer-and-hanging-man/): The hammer and hanging man share a small body and long lower wick but mean different things by location. Learn to identify, confirm and trade both patterns. - Related: [Shooting Star](https://learn.tradelabsai.com/candlesticks/shooting-star/): A shooting star has a small body and a long upper wick after a rise, showing rejection of higher prices. Learn how to confirm it and trade it at resistance. - Related: [Morning Star and Evening Star](https://learn.tradelabsai.com/candlesticks/morning-star-and-evening-star/): The morning star and evening star are three candle reversal patterns. Learn their structure, what each candle shows, how to confirm them and how to trade them. - Related: [Support and Resistance](https://learn.tradelabsai.com/price-action/support-and-resistance/): Support is where buying tends to stop a fall; resistance is where selling tends to stop a rise. Learn to draw levels, judge their strength and trade them well.