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// indecision · single candle · either direction

Doji candlestick: what it is and how to trade it.

A doji is a candlestick where the open and close are essentially the same price — almost no real body. Long upper and lower wicks are common. It says: buyers and sellers fought to a draw inside this bar. What that means depends entirely on what came before it.

// shape
  • Open and close within a few cents of each other.
  • Upper and lower wicks of any length (often roughly symmetric).
  • Body is functionally a horizontal line.
  • Variants: long-legged doji, dragonfly (no upper wick), gravestone (no lower wick).
// what it signals

What a doji actually means.

On its own, almost nothing. A doji is the candlestick equivalent of a person shrugging — buyers and sellers spent the bar pushing in both directions and ended up where they started. That's information about the bar; it's not information about the future.

Where a doji becomes interesting is at inflection points. After a strong directional move (three or more trending bars in a row), a doji is the visible sign that the prevailing side has run out of effort. The trend that was firing on all cylinders just stalled. That stall is sometimes the first bar of a real reversal — and sometimes it's a single hesitant bar in a still-strong trend.

The doji itself is not the trade. The trade is the follow-up bar. If the bar after a doji prints decisively in the opposite direction of the prior trend, the doji marked a real turn. If the bar after the doji continues the trend, the doji was just a breather. That's why doji-based entries should usually wait for confirmation.

// when it fails

When the doji is just noise.

Most candlestick guides are quietly aggressive about the doji's predictive power. The honest version is this: the majority of doji bars in normal market conditions are noise. Here's when:

Because of this, doji is one of the patterns where the AI reasoning layer earns its place — soft factors decide whether a specific doji is worth taking.

// how thesis uses it

How Thesis trades doji.

Doji is one of the lower-conviction patterns we trade. The detector is generous — anything with a body small enough relative to its wicks counts — but the AI reasoning layer is unusually strict on doji setups. It usually wants a confirming bar, a clear trend leading into the doji, and supportive RSI before it greenlights a trade.

Most live doji setups end up skipped, not taken. That's exactly what should happen with an indecision candle: most of them don't deserve a trade. See how the AI layer works.

// related patterns

Let an AI sort the doji from the noise.

Free practice mode shows every doji detection — and the AI's reasoning for taking or skipping each one.

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