Doji

A doji is a candlestick pattern in technical analysis that indicates market indecision. It forms when the opening and closing prices of an asset are almost equal, resulting in a small or non-existent body with long wicks. A doji can suggest a potential reversal in the market trend or signal that buyers and sellers are equally balanced. Traders often look for dojis at the top or bottom of trends, as they may indicate that the current trend is losing strength. However, a doji by itself does not guarantee a reversal and is typically used in conjunction with other technical indicators.

Example

A doji forms after a strong uptrend, signaling that buyers and sellers are in equilibrium, and a trend reversal could be imminent.