Doji Pattern

A Doji is a candlestick pattern that occurs when the open and close prices of a stock are identical, signaling indecision in the market. The term 'Doji' comes from the Japanese word for 'indecision,' which reflects the balance between buying and selling pressures. In terms of appearance, a Doji looks like a cross or the letter T, with a small body and long upper and lower wicks (shadows). It suggests that neither buyers nor sellers gained control during the trading period, often signaling potential market reversal or consolidation.