Open and close are virtually the same, leaving a cross-shaped candle. It signals indecision and matters most at the end of a trend or at a key level.
How to identify it
- Body is tiny relative to the full range
- Wicks on both sides
- Location (trend extreme or level) gives it meaning
Entry
Trade the break of the doji high or low in the direction of the next close.
Stop loss
Beyond the opposite end of the doji.
Target
The next significant level in the breakout direction.
Invalidation
Price breaks one side, then quickly closes back through the other.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your doji trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.