Doji Definition: What Is a Doji Candle Pattern?


Doji Definition: What Is a Doji Candle Pattern?



Doji Definition: What Is a Doji Candle Pattern?

Friends, if you are eager to know about Doji Candle and you want to know what is Dozi Candle and how it works then you have come to the right place,

Why it is made and how the trade is estimated from this, we will know all this, just request you to read this post completely. 

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Spinning Top Candlestick Definition

Doji Definition: What Is a Doji Candle Pattern?

I also like Doji candle very much and there are some reasons behind it because if some other parameters are used with this candle then it rarely fails and we will discuss these parameters in detail in my upcoming post.

If the Doji is defined then its open price and close price are almost equal and no matter how big it is, upper shadow and lower shadow can be very big, sometimes we can also consider the middle body as Doji or if there is no middle body then even we can consider him a Doji

As you can see in the picture, its open price and close price are almost equal and its upper shadow and lower shadow are also very big. Seeing this, what do you think, what would have happened on the day that this candle became, I will explain to you in detail. 

Doji Definition: What Is a Doji Candle Pattern?

The main importance of this candle is at the bullish time of the market or the bearish time of the market because the reason behind this candle is that when the market is bull and at the same time both the buyer and the seller are dominating at the same time, then there is a need to accelerate.

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Those who had been buying or running the stock for a long time, there comes a panic in them that the market which was continuously going up for several days and the candle was also becoming bear's, he suddenly made a Doji. That is, sellers have also come in the market now.

It should also be told that there is no importance of color in the Doji, meaning if the market is bullish for many days and the Doji is formed, then it becomes red or green, it has no importance, it means that the market which was going up continuously for many days, now it has become a Doji, that means now the market has stopped and now people or traders have come in the process of booking profit, then if it is explained in brief, then Doji is a sign of a reversal.

Now if Doji is formed at the time of bullishness, then sell should be done and if there is a recession then you should buy fast, you have to keep in mind that the market is normal at that time and there is no negative or positive news, if dozi is formed on the top side then negative news is good for you and if it is formed below then positive news can be good for you. 

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However, we always have to remember our rule that we should have some flexibility in our thinking so that if your deal turns upside down then you will have minimum loss, although it is very much like Spinning Top and its work is also the same but it is much more effective than where there is uncertainty in Spinning Top while it is considered a signal of reversal hence this candle is my favorite too.

Here I show you through a picture how and when it is made :-

Here you can see that the market was going up and suddenly a  Doji was formed and selling started in the market.

Now I also show you another picture in which even after the formation of Doji, the buyers are dominating :-

In this picture you will see that doji is also made with spinning top many times but still the price is not coming down, there can be some major reasons as well as I told earlier that the market means everything inside itself. What is happening in this world, it absorbs the meaning in the value of the share.

For example, if the tension between India-China or Pakistan increases or the budget is about to come or the US President tweets something bad, even then there is a slight correction in the stock for a day or two, that's why the stock keeps on increasing and that was the global market, some good news for that stock, the government's focus for the sector of that stock in the coming days, the possibility of a buy back or dividend announcement in the coming days, etc.  

Keep in mind that before making any position, even if it is long or short please focus on news.

In short we can say that if the market is boolish for some times & a Doji candle is formed in chart then you should have to take short possition or if the Doji is formed in bearish time you should have to buy that stock.

For Making Chart For Trading pls. Click Here

(You can also see all these patterns yourself on or on

So friends, I sincerely hope that you must have understood Doji completely and you must have also understood that when and under what circumstances it is made, still if you have any question then you can ask by commenting.

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Doji Definition: What Is a Doji Candle Pattern?

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