The doji (Japanese for "Mistake") is a session in which opening and closing prices are identical or very close. A doji to the candlestick analyst is the same thing as the narrow-range day to the swing trader. The power of the doji is not only in its identical or close open and close, but also in the length and placement of its shadows.
Long-Legged Doji: This doji reflects a great amount of indecision of the underlying asset.
Dragonfly Doji: The long lower shadow suggests that the direction of the trend may be nearing a major turning point. It is formed when the opening and closing price of the underlying asset are equal and occur at the high of the day.
Gravestone Doji: The long upper shadow suggests that the direction of the trend may be nearing a major turning point. It is formed when the opening and closing price of the underlying asset are equal and occur at the low of the day.
Neutral Doji (Northern&Southern Doji) :Dojis form when the opening and closing prices are virtually equal. Alone, dojis are neutral patterns.
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