What is a Doji chart?

A Doji is a unique pattern in a candlestick chart, a common chart type for trading. It is characterized by having a small length, which indicates a small trading range. The small length means that the opening and closing prices of the financial asset being traded are equal or have small differences.

What are the different types of dojis?

There are several different types of Dojis, but the most common is a Neutral Doji, which has equal highs and lows. Neutral Dojis (also named common Dojis or rickshaw men) can occur at any time during an uptrend or a downtrend and may signal a change in direction, but they are not always reliable.

How do you spot a Doji?

Spot a Doji on a price chart. Look closely to define which type of Doji it is — this step is very important. Look for other indicators that can confirm or deny the signal. For example, if the Doji is followed by a long bullish candlestick, this could be a sign that prices are about to move higher.

What is a long-legged doji?

The long-legged doji is a type of candlestick pattern that signals to traders a point of indecision about the future direction of a security’s price. This doji has long upper and lower shadows and roughly the same opening and closing prices.