The doji candlestick pattern (view full size chart) is one of the single candlestick patterns (i.e. it consists of only one candlestick), and on its own (i.e. without the rest of the chart) it is neither a bullish nor bearish pattern.
The doji candlestick opens at (or near) its average price (i.e. its middle), and closes at exactly the same price, showing that the time frame consisted of both bullish and bearish trading, with neither the bullish nor bearish trading having any lasting impact on the price. The doji pattern is very similar to the spinning top pattern, expect that the spinning top pattern has more flexibility in its opening and closing prices.
Use In Trading
The doji pattern can occur in a number of different contexts (e.g. at the beginning of a trend, during a trend, at the end of a trend, etc.), so by itself it only indicates that the time frame was neither bullish nor bearish. However, depending upon the context, and the adjacent candlesticks, the doji pattern can be used as both a trade entry and/or exit pattern. The doji is also included in some of the two or three candlestick patterns, in which case it has more relevance, and can provide an indication of upcoming price movement.
