The Doji Candlestick

The Doji is a candlestick with a very small body and similar top and bottom wick lengths. It states that there is indecision between bears and bulls. Doji candlesticks are normally found at the end of trends, which indicates a possible sign of reversal. It is formed when the opening price and closing price are very close to each other. Doji's are normally found in consolidation areas, where the market is "resting" from it's trend direction.

Below are 2 examples of trade reversals which came after the doji candlestick.


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