Doji
A Doji is a single candle where the open and close are effectively equal, producing a near-zero body with wicks on one or both ends — the textbook indecision candle.
What it measures
A Doji is defined by body percentage: |close − open| ÷ range is below a small threshold (commonly under 5–10%). The wick distribution around that tiny body labels sub-types — Dragonfly (all lower wick), Gravestone (all upper wick), Long-Legged (both wicks large).
Parameters
| Name | Default | Range | Note |
|---|---|---|---|
| body_max_pct | 5 | 1–15 | Maximum body-to-range percentage for a candle to qualify as a doji. Stricter thresholds catch fewer but purer signals. |
| min_range_atr | 0.5 | 0.1–2.0 | Minimum candle range relative to ATR. A tiny doji inside a compressed range is meaningless; a doji at ATR-scale is a real fight. |
How it behaves
A doji at a swing high or low, especially after a strong preceding candle, marks the moment where the prior initiator lost control. Dragonfly dojis at support often precede a bounce; Gravestone dojis at resistance often precede rejection. Inside consolidation a doji is context noise — it only carries information at extremes.
When it misleads
A doji is a low-conviction candle by definition, and treating it as a standalone reversal signal is a well-documented losing strategy. Confirmation candles matter: no long entry on the doji itself, only on the next candle that breaks its high with volume. And a doji in the middle of a strong trend is far more likely to resolve as continuation than as reversal.
Backtest result
Sourced backtest in preparation — we're running the rule on our own historical candles before publishing numbers we can stand behind.
FAQ
- What is the difference between a Doji and a Spinning Top?
- Both have small bodies. A Doji is nearly bodyless (open ≈ close); a Spinning Top has a slightly larger body (~5–25% of range) but is still small relative to its wicks.
- Are Dojis reliable reversal signals?
- Only at meaningful levels with confirmation. In isolation, dojis fire far too often to have edge — most resolve as continuations because the surrounding trend was more informative than the pause.
- What is a Gravestone Doji?
- A doji with a long upper wick and no lower wick — open, low and close are all near the low, while price rejected sharply higher during the candle. Bearish at resistance.
Build a strategy with Doji
Drop the block into the Nodlow builder and backtest on real historical data.
Try it in the builder