Doji — what it is and how to use it in trading
Definition
A Doji is a candle where the open and close are almost equal (the difference is smaller than the threshold parameter of the candle's overall range), so the body looks like a thin line or a cross.
How it works in the builder
doji is a boolean operand with a threshold parameter (default 0.10): the smaller the value, the stricter the requirement that open and close be "equal", and the less often the pattern qualifies.
What it looks like on the chart
Visually the body is almost absent, while the upper and lower wicks can be any length — Doji has sub-types too (dragonfly, gravestone, and others), available in the builder as separate operands.
Typical use
On its own a Doji doesn't signal a direction, only market indecision — it is read in the context of the surrounding candles. Typical condition: doji == 1 at a key support/resistance level as a hint the trend may be pausing.
Common pitfalls
Doji is one of the most common candlestick patterns, especially in low volatility, so as the sole entry condition it produces far too many signals with little predictive value. It works better as a contextual filter or part of a three-candle figure (such as a Morning Star) than as a standalone trigger.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.
Doji
Block variants
Dragonfly Doji
Gravestone Doji