Doji trading centers on one of the most telling candlestick patterns: the doji, where a market opens and closes at nearly the same price.

Doji trading centers on one of the most telling candlestick patterns: the doji, where a market opens and closes at nearly the same price. This narrow real body signals indecision between buyers and sellers, making it a powerful context clue rather than a standalone buy or sell command. In uptrends, a doji can warn of tired momentum; in downtrends, it can hint at stabilization. Traders watch for follow-through, such as a break above a doji’s high or below its low, to confirm direction and define risk. Different variations—standard, long‑legged, dragonfly, and gravestone—highlight whether pressure came from bulls, bears, or both. Effective doji trading combines location (support, resistance, trendlines, moving averages), confirmation (volume, momentum), and risk management (clear invalidation, position sizing). The pattern appears across markets—stocks, forex, crypto—and on multiple timeframes, but reliability improves with confluence and disciplined execution. Remember: a doji reflects a battle, not a verdict; let the market’s next candle and your plan provide the signal.

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