The doji is a candlestick pattern. The real body is minimally or not marked, the closing price is so very close to the opening price.
Candlestick Doji represents indecisiveness of the price trend. The doji may have long shadows, but it will have very little or no body. The body indicates that there equal dominance from buyers & sellers.
The price may turn up or down based on the current direction. If current direction is up then price will reverse and go down. If current direction is down then price may reverse and go up. Doji during range bound would be false signal, that needs to be avoided.
Price may turn upon seeing the doji, however doji should be used with any other indicator. Doji in the downtrend is more powerful and reliable than doji in the up trend.
Doji can be classified as four different types based on the placement of the candle body.
Dojis form when the opening and closing prices are virtually equal. Alone, dojis are neutral patterns.
This doji reflects a great amount of indecision about the future direction of the underlying asset. During the period, sellers and buyers had upper had at sometime but eventually end indecisively.
The long upper shadow suggests that the direction of the trend may be nearing a major turning point. Sellers have won the war between sellers and buyers. And closed near the day's low.
The long lower shadow suggests that the direction of the trend may be nearing a major turning point. Buyers have won the war between sellers and buyers. And closed near the day's high.