Patterns

Doji

Edited by GANGCO STUDIO · Updated

Contents Doji
  1. MACD
  2. Ichimoku Cloud
  3. Pivot Line
  4. DMI
  5. Parabolic SAR
  6. Aroon
  7. Supertrend
  8. Exponential Moving Average
  9. MA Golden Cross
  10. MA Dead Cross
  11. ADX
  12. RSI
  13. Stochastic
  14. SONAR
  15. TRIX
  16. CCI
  17. ROC
  18. Disparity Index
  19. Psychological Line
  20. Williams %R
  21. AB Ratio
  22. Ultimate Oscillator
  23. Volume Profile
  24. OBV
  25. MFI
  26. Volume Oscillator
  27. Volume Ratio
  28. AD Line
  29. EOM
  30. PVT
  31. CMF
  32. VWAP
  33. Force Index
  34. Bollinger Bands
  35. ATR
  36. Envelope
  37. Keltner Channels
  38. Donchian Channel
  39. Standard Deviation
  40. Chaikin Volatility
  41. Three White Soldiers
  42. Three Black Crows
  43. Morning Star
  44. Evening Star
  45. Hammer
  46. Inverted Hammer
  47. Hanging Man
  48. Shooting Star
  49. Doji
  50. Bullish Marubozu
  51. Bearish Marubozu
  52. Bullish Engulfing
  53. Bearish Engulfing
  54. Piercing Line
  55. Dark Cloud Cover
  56. Bullish Harami
  57. Bearish Harami
  58. Elder-Ray Index
  59. Coppock Curve

A weapon that finds and marks candles whose open and close are almost the same, so the body is very thin. It is a candle where buyers and sellers ended up evenly matched.

Weapon tier
Starter tier
Slots used
Candle markings 1/3

Concept

The price moved up and down during the candle, yet it finished close to where it started. If the body is very thin compared with the distance between the high and the low, it counts as a doji.

A doji does not point in any direction. It appears where a rise pauses, where a fall hesitates, and in quiet sideways stretches where nothing happens. Where it appears decides what it means.

  • Doji

Charts by TradingView Lightweight Charts™

80 candles with volume. Candle 60 (yellow vertical line), right after a big rising candle, is a doji. The price slips for a few days afterwards and then rises again. Keyboard: ←/→ to move, +/− to zoom, 0 to see the whole chart.

The yellow vertical line is the doji. The day after a big rising candle the tug-of-war became even, then the price slipped for a while and rose again. This scene was picked, and what follows a doji is different every time. Drag the chart sideways with a finger or the mouse to move it, and pinch with two fingers to zoom in. With a keyboard, click the chart, then use ←/→ to move and +/− to zoom.

How it is calculated

Find body = |close − open| and the candle’s range = high − low.

If the body is at most range × 0.05, it is a doji. A candle with zero range (all four prices equal) is not counted.

No other candles are checked. The decision uses this one candle only.

Parameters

What it setsName in the gameDefaultRange
How thin the body must be, as a share of the candle’s range dojiMax 0.05 0.01 – 0.2

Trading ideas

A doji at the end of a long rise is often read as “buying is running out of steam”, and one at the end of a long fall as “selling is running out of steam”. Decide by which way the next candle closes.

A doji inside a sideways stretch means very little. Read it together with the trend (lesson 2).

Common traps

  • Dojis are very common. In a quiet stock several can appear within 80 candles. Reacting to each one only adds trades.
  • A doji gives no direction. Reading it as “a doji appeared, so the price will rise (or fall)” does not hold.
  • The chart on this page is a picked scene. More often, nothing in particular happens after the same shape.

In the game

  • “Doji” is an “Starter tier” weapon and uses 1 “Candle markings” slot (limit 3). It uses no chart lines and no indicator panel.
  • In the game, every candle that meets the conditions gets a faint gray vertical line in the price area, and only the most recent line is labeled “Doji”. The chart on this page looks the same; the yellow vertical line is an extra mark for the candle this page talks about.
  • If you equip several “Candle markings” weapons, their lines are told apart as solid, dashed and dotted.

Related indicators and lessons

  • Three White Soldiers — A candle-pattern marker that puts a vertical line on the third of three big up candles closing higher one after another.
  • Three Black Crows — A candle-pattern marker that puts a vertical line on the third of three big down candles closing lower one after another.
  • Morning Star — A candle-pattern marker for a three-candle bottom shape — big down candle, small-bodied candle, big up candle — with a vertical line on the third candle.
  • Evening Star — A candle-pattern marker for a three-candle top shape — big up candle, small-bodied candle, big down candle — with a vertical line on the third candle.
  • Hammer — A candle-pattern marker that puts a vertical line on a single candle in a downtrend with a long lower shadow and almost no upper shadow.
  • Inverted Hammer — A candle-pattern marker that puts a vertical line on a single candle in a downtrend with a long upper shadow and almost no lower shadow.
  • Hanging Man — A candle-pattern marker that puts a vertical line on a single candle in an uptrend with a long lower shadow and almost no upper shadow.
  • Shooting Star — A candle-pattern marker that puts a vertical line on a single candle in an uptrend with a long upper shadow and almost no lower shadow.
  • Bullish Marubozu — A weapon that finds and marks rising candles with almost no shadows and a body far longer than usual. Buyers pushed all the way through the candle.
  • Bearish Marubozu — A weapon that finds and marks falling candles with almost no shadows and a body far longer than usual. Sellers pushed all the way through the candle.
  • Bullish Engulfing — A weapon that marks a large rising candle whose body completely wraps the previous falling candle’s body, in a downtrend.
  • Bearish Engulfing — A weapon that marks a large falling candle whose body completely wraps the previous rising candle’s body, in an uptrend.
  • Piercing Line — A weapon that marks, in a downtrend, a rising candle that opens below a long falling candle and closes above the middle of that candle’s body.
  • Dark Cloud Cover — A weapon that marks, in an uptrend, a falling candle that opens above a long rising candle and closes below the middle of that candle’s body.
  • Bullish Harami — A weapon that marks, in a downtrend, a small rising candle that fits entirely inside the body of the long falling candle before it.
  • Bearish Harami — A weapon that marks, in an uptrend, a small falling candle that fits entirely inside the body of the long rising candle before it.
  • 1. Reading a single candle