Doji / Neutral Doji
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A candlestick pattern where the open and close are at approximately the same price, resulting in a virtually nonexistent body. It indicates equilibrium between buying and selling pressure, suggesting indecision or a potential trend change. When appearing at the top of an uptrend or the bottom of a downtrend, it often signals a reversal.
Do not enter on a doji alone. Enter after the next candle confirms direction. Short after a bearish candle following a doji in an uptrend; long after a bullish candle following a doji in a downtrend.
Project 1 to 2 times the doji's shadow range (high to low) in the direction of the next candle to determine the price target. Or target the nearest support/resistance line.
Place a stop-loss on the opposite side of the doji's shadow (above the upper shadow for short positions, below the lower shadow for long positions).
High volume on a doji increases the probability of a trend change. Low volume may indicate merely indecision or thin trading.