CDLDOJI (CDLDOJI)

CDLDOJI (Doji) is a single-candle indecision pattern where the open and close are at or very near the same price, creating a small or nonexistent body with upper and/or lower shadows. The shadows can vary in length - long shadows indicate more volatility during the session, short shadows indicate tight consolidation. A Doji represents equilibrium between buyers and sellers - neither side could establish control during the period. The pattern does not indicate direction alone but shows indecision and potential trend change, particularly significant when appearing after strong directional moves. Classic Doji has open and close virtually identical.

Doji candles are among the most common and significant single-candle patterns in cryptocurrency trading, signaling indecision that often precedes trend changes or continuations depending on context. At trend extremes, Doji patterns suggest exhaustion and potential reversal. After long uptrends, Dojis show buyers hesitating; after downtrends, they show sellers losing conviction. However, Dojis during consolidation simply indicate continued indecision. For trading, use Dojis as alert signals requiring next-candle confirmation. After uptrends, short if the next candle closes below the Doji; after downtrends, buy if the next closes above. Doji patterns are most powerful at key support/resistance levels. Combine with momentum indicators: RSI at extremes showing potential reversal, MACD divergences, volume analysis. Doji variants (Dragonfly, Gravestone, Long-legged) provide more specific signals. Extremely common in 24/7 crypto markets - filter by context and confirmation.