The Doji forms when the open and close prices are nearly equal, creating a cross or plus-sign shape. It represents perfect indecision between buyers and sellers. Subtypes include: Standard Doji (balanced wicks), Long-Legged Doji (very long equal wicks), Gravestone Doji (upper wick only), and Dragonfly Doji (lower wick only).
Neither buyers nor sellers win the session. This perfect equilibrium signals that the current trend has exhausted its momentum and a turning point may be approaching. The longer the wicks, the more violent the intraday battle — and the more significant the indecision.
At the top of an uptrend, a Doji has a 58% chance of leading to a bearish reversal. At the bottom of a downtrend, 58% bullish reversal. The 2–6% move follows in the direction of the next confirmation candle over 3–7 days.
Example Chart
Open ≈ close; equal wicks signal pure indecision