Doji

A neutral candlestick (white or black) which has (almost) the same opening and closing prices.

The length of the upper and lower shadows can vary, and the resulting candlestick looks like, either, a cross, inverted cross, or plus sign.

It is important to emphasize that the Doji pattern does not mean reversal, it means indecision. Doji's are often found during periods of resting after a significant move higher or lower; the market, after resting, then continues on its way. Nevertheless, a Doji pattern is a great sign that a prior trend is losing its strength.

Double doji lines (two adjacent doji lines) imply that a forceful move will follow a breakout from the current indecision.

 

Recognition Criteria:

·        Opening and closing prices are equal

OR
·        Body length is less then N percent of the average body length of the last M lines

 

Function: Doji()

Trend: Neutral

Type: Neutral