Doji and Spinning Top: Signals of Indecision

A doji forms when the open and close are almost the same — a very thin body. It means the period ended in a draw.

• Standard doji — balanced upper and lower wicks. Pure indecision.
• Dragonfly doji — a long lower wick, almost no upper wick. Price was rejected from below.
• Gravestone doji — a long upper wick. Price was rejected from above.
• Spinning top — similar to a doji, but with a small body rather than a very thin one.

Context decides

A doji in the middle of a range = normal, often ignored. A doji right at strong support/resistance after a long trend = a signal of a potential shift in strength that is worth watching.

Key points

• Doji = a pause/indecision, not an automatic reversal.
• A doji's value rises dramatically when it appears at an important level.