What are doji patterns on a candlestick chart?

The candlestick chart can form different Doji patterns depending on the price trends. The four main types of Doji patterns commonly seen are – common, gravestone, long-legged, and dragonfly Doji. Doji looks like a plus sign, with each end denoting market positions. The left arm of the cross represents the opening price of a security.

How do you identify a Doji candle?

Identifying the Doji on Trading Charts: A doji candle is recognizable by its cross or plus-sign shape, setting it apart from other candlestick patterns. Its thin body usually appears after a series of strong bullish or bearish candles, signaling a pause in the prevailing trend.

What is a Doji candle?

Dojis can be a part of continuation patterns like bull and bear flags. The large candlestick makes up the flagpole. The doji candlesticks make up the flag. The indecision candles show buyers and sellers are gearing up for the momentum of the continued trend.