The doji pattern is one of the most common Japanese candlestick patterns you will ever see on the price chart.

The pattern shows that the market opened and closed around the same price level, indicating an equilibrium in buying and selling pressures.

Since no one is in control of the market, the doji, especially the regular type, is often considered an indecision pattern.

There are five recognized types of the doji pattern, but here, we will discuss the three common ones


  • The regular doji
  • The dragonfly doji
  • The gravestone doji.  


The regular doji pattern

The regular doji pattern is characterized by the following features:

  • The open and close prices are usually around the midpoint
  • There’s a little or no real body that is often around the midpoint
  • The upper and lower shadows are almost of equal size.

See the illustration below :


The significance of the regular doji pattern

Since the opening and closing prices are around the same place, it means that the market didn’t decide which direction will take. However, the trading significance of the pattern depends on where the pattern forms.

Regular doji in an uptrend 

When the market is trending up, it means that buyers are dominating the market.

If a regular doji forms in such a market, it shows that buyers are getting exhausted and are unable to keep pushing the price higher, as sellers are able to push the price back to the opening price.

So, it might be an indication of a potential downward reversal. 

See the illustration below: 


Regular doji in a downtrend

In a downtrend, sellers are dominating the market. When the regular doji forms in that situation, it indicates that sellers are no more in control of the market and buyers are gaining momentum.

So, an upward reversal might be in the cards.

See the illustration below:


How to use the regular doji candlestick in trading

A very common way to use the regular doji pattern in trading is to know when to take profit.

If you are riding a trend and the pattern forms, it’s time to take profit. 

Take a look at the EUR USD daily chart below:


The market was trending up and then three regular dojis formed, indicating indecision in the market.

The right thing to do then was to close your trades and take all your profits.

See another real chart example below, but this time, it’s a downtrend:


The formation of the doji indicated that sellers have lost momentum. 

If you were riding the downtrend, it would be wise to take profit when the doji pattern formed to avoid the reversal that followed.

The doji pattern can also be used as an entry signal when combined with other technical factors that form a confluence, such as support/resistance levels, the Fibonacci retracement levels, moving averages, and trend lines. 

Sometimes, the doji pattern can form a more potent candlestick pattern when combined with other candlesticks around it.

Examples of such patterns include the morning doji star, evening doji star, harami cross, abandoned baby, etc.

Whether it’s the doji alone or the doji-derived patterns, don’t ever trade the pattern alone: there must be a confluence of many technical factors before you can have a high probability setup.

The dragonfly doji pattern 

The dragonfly doji candlestick is formed when the open, high, and close prices are around the same level. It is characterized by the following features:

There’s little or no real body at the upper end

There’s little or no upper shadow

The lower shadow is very long

See the illustration below: 


The significance of the dragonfly doji pattern

The long lower shadow (the tail) of the dragonfly doji pattern shows that buyers rejected sellers’ attempts to push the market lower.

It implies that buyers are able to neutralize the sellers and might be ready to push the price higher in the next trading session.

So, the dragonfly doji is considered a bullish candlestick pattern

How to use the dragonfly doji candlestick in trading

The dragonfly doji might indicate a potential upward reversal when it forms at the lower end of a downward price swing, but it has to form around a support level.

See the chart below:


Notice how the price was strongly rejected at the support level, indicating that the buyers were ready to wrestle control out of the sellers. 

This is just a basic way of trading the pattern. If you want to learn the strategies that work and how to trade them profitably, you will get them in this trading course. 

The gravestone doji 

Being the bearish version of the dragonfly doji, the gravestone doji is formed when the open, low, and close prices are around the same level. 

It is characterized by the following features:

Small or no real body at the upper end

A little or no upper shadow

A long lower shadow 

See the illustration below:  


The significance of the gravestone doji pattern

The gravestone doji pattern shows that the buyers were able to push prices well above the open earlier in the trading session, but sellers later overwhelmed them and pushed the price back down. So, the pattern is considered a bearish reversal signal.

How to use the gravestone doji candlestick in trading

When the dragonfly doji forms at the end of an upward price swing, it might indicate a potential downward reversal.

See the chart below:


You can see a gravestone doji that formed at the top of an uptrend, indicating that buyers are getting exhausted and sellers might take over.

This pattern can only be reliable if it forms around a resistance level. But you should also look for more factors of confluence — such as supply and demand areas, bank breakout traps, etc. 

 When trading this pattern. These are only the basics. You will learn more in my trading course.

While you may feel like the work to do to achieve trading success is enormous, just know that I’m here to assist you in your trading journey.

What you need to do is to take the bold step and enroll in my trading course where I will teach you the things that work and how to apply them.

I will open up the doors for you, but ultimately, it’s you who has to put in the hard work to apply what you learn; I cannot force you to do what is required to deserve success in trading.

Like everyone else, you may think you deserve to succeed in trading but your trading account will tell you if you’re truly doing what would make you deserve it. Why not take that bold step now to deserve that success you desire? Enroll in this trading course!