Lesson 33 of 69
The Doji family
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A forms when the and the finish at virtually the same price. The battle was fought and nobody won. What makes each doji different is where the sit.
Standard Doji
Doji
Doji in context — interactive mini chart
- Pattern: Doji forms after the move into it
- Entry: Sell only once a candle closes below the pattern low
- Stop: Invalidation sits above the pattern high
Simulated price action for illustration — switch timeframes to see how the same pattern reads at different scales.
- Definition: an almost non-existent body in the middle of the range, with wicks of similar length above and below.
- Psychology: pure indecision. Buyers and sellers pushed price both ways and finished exactly where they started.
- Where it forms: anywhere, but it only carries information after a sustained move or at a key level. In a quiet range it is noise.
- What usually happens next: a pause. Either the resumes after digesting, or the doji marks the point where died. The next tells you which.
Dragonfly Doji
Dragonfly Doji
Dragonfly Doji in context — interactive mini chart
- Pattern: Dragonfly Doji forms after the move into it
- Entry: Buy only once a candle closes above the pattern high
- Stop: Invalidation sits under the pattern low
Simulated price action for illustration — switch timeframes to see how the same pattern reads at different scales.
- Definition: open, high and close all sit together at the top with a long — a doji shaped like a hammer.
- Psychology: sellers took full control during the period and lost every bit of it by the close. This is one of the cleanest rejections of lower prices you will see.
- Where it forms: at , at the bottom of a , or at the low of a range.
- What usually happens next: a reaction is common, but only if the following candle closes above the doji's high.
Gravestone Doji
Gravestone Doji
Gravestone Doji in context — interactive mini chart
- Pattern: Gravestone Doji forms after the move into it
- Entry: Sell only once a candle closes below the pattern low
- Stop: Invalidation sits above the pattern high
Simulated price action for illustration — switch timeframes to see how the same pattern reads at different scales.
- Definition: open, low and close sit together at the bottom with a long — the mirror image of the dragonfly.
- Psychology: buyers ran price up and gave back every point. Total of higher prices.
- Where it forms: at , at the top of an , or at the high of a range.
- What usually happens next: a reaction, typically by the next candle closing below the doji's body.
| Doji | Wick | Reads as |
|---|---|---|
| Standard | Both sides | Indecision — trend paused |
| Dragonfly | Long lower | Bullish rejection of lower prices |
| Gravestone | Long upper | Bearish rejection of higher prices |
Remember
A doji is a question, not an answer. It tells you the current trend just lost its momentum. The candle that follows is what supplies the answer.
Key takeaways
- A doji has an almost identical open and close — pure indecision.
- Gravestone dojis reject the upside; dragonfly dojis reject the downside.
- Dojis mid-range are noise; dojis at a key level are information.
- Trade the reaction after the doji, not the doji itself.
Knowledge check
3 quick questions — your best score is saved to your progress.
1. What defines a doji?
2. What is a gravestone doji?
3. How should a doji in the middle of a range be treated?
Progress is saved on this device.
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