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The Doji candle, referred to as the Doji star, signifies the indecision between the bulls and bears of the financial or crypto market. This candlestick chart pattern forms specifically when a market’s close and open prices are almost the same. There are plenty of Doji patterns, including dragonfly Doji, gravestone Doji, and long-legged Doji.
Doji candlestick is mainly used to indicate indecision since the high, low, open, and close in which these four prices are the same.
Still, not all of these Doji variations are used the same way. In fact, Doji can also be used to indicate the slowing momentum of an existing trend. That is why you must understand the differences and interpret the differences of these formations to minimize risks and earn a consistent profit.