Dojis

A Doji is a significant candlestick pattern in technical analysis, suggesting indecision and potential reversal in the market.

Characteristics:

1. The Open and Close: In a Doji, the opening and closing prices for the period are the same or very close to each other. This results in a candlestick with a very thin or nonexistent body.

2. The Shadows: The shadows (or wicks) of a Doji can vary. The length of the shadows can be long or short and may be equal (forming a cross) or unequal (forming an inverted cross or plus sign).

Types of Doji Patterns:

Doji Stars

Dragonfly Doji

Evening Doji Star

Gravestone Doji

Morning Doji Star

A Doji pattern represents market indecision. Neither the buyers nor the sellers could gain an upper hand, resulting in a standoff. If this pattern appears during an uptrend, it can signal that the uptrend is losing strength and may reverse. Conversely, a Doji during a downtrend can suggest that the sellers are losing momentum and a bullish reversal could be near.

However, it's crucial to use the Doji in conjunction with other technical analysis tools for confirmation as the Doji only signals a possible reversal.