Easy Doji

A Doji is a pattern found in a candlestick chart and is typically used by traders to do technical analysis. It is characterized by a small body which means the opening and closing price are virtually equal. The lack of a real body conveys a sense of indecision between buyers and sellers and the balance of power may be shifting. A Doji is not as significant if the market is not clearly trending, as non-trending markets are inherently indicative of indecision. However, if a Doji is found in an uptrend or downtrend, this is normally seen as significant, as it is an indication that the buyers are losing conviction when it is formed in an uptrend or sellers are losing conviction if seen in a downtrend.

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