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Candlestick pattern

Doji

Opening and closing practically the same, with shadows on both sides; The body is a line or very narrow.

Example in context

After an extended rise in resistance, a doji followed by a bearish close warns of loss of momentum.

Prior contextHighlighted pattern · new information follows

Exact formation

Opening and closing practically the same, with shadows on both sides; The body is a line or very narrow.

What is happening in the market

Buyers and sellers moved the price, but neither maintained an advantage at the close.

Where it matters

Its meaning depends on the trend, level and subsequent candle. In the middle of a range it is frequent noise.

How to confirm it

Break of the maximum or minimum consistent with the context.

When it is invalidated

Confirmed movement towards the opposite side of the proposed hypothesis.

Common mistake

Assign it a bullish or bearish direction on its own.