Doji

A Doji is a candlestick with an open and close price at the same level. Shadows can exist on either sides of the body and can be long or short. You should always look at the Doji’s shadows, placement in a trend, and color.

“Doji”, without any preceding categorization, typically refers to a candlestick that is reminiscent of a plus sign or a cross with its bar directly in the middle. This indicates that opened, moved to a high, fell to a low, and then moved back to the middle to close at the open.

Dragonfly Doji

A “dragonfly” doji has its body at the top of candlestick instead of the middle. This indicates the price opened, fell, and rose to the open. The sell pressure dominated the trading period, but was eventually overcome. Buyers were able to return the price to the opening value. In a downtrend, buyers have emerged below this value. If they continue to enter, the trend is over.

Gravestone Doji

A “gravestone” doji has its body at the bottom of the candlestick instead of the middle. The path of prices shows an open at or very near the low of the trading period, followed by buyers driving a rise to the high of the period. The buyers lose control of price momentum, and sellers move price lower to close. In an uptrend, buyers failing to push price forward is a warning sign of reversals. In a downtrend, buyers have entered, but failed to keep price at a high. You should note that price didn’t successfully move lower.