A doji is a candle whose open and close are equal or close under a stated tolerance. It records little net change between those two observations. The shape does not reveal participants' intentions or establish that a reversal is likely.

Distinguish the Shapes

A standard doji has a small body with upper and lower wicks. A long-legged doji has a large high-low range relative to its body. A dragonfly has its open and close near the high with a lower wick; a gravestone has them near the low with an upper wick.

These names describe geometry. A long wick shows that the period traded beyond its body, but OHLC data alone do not show the complete sequence of trades. An apparent dragonfly is not proof of institutional buying.

Define “small body” relative to the instrument's tick size or a specified range measure. Without a tolerance, different reviewers can select different candles. A spinning top uses a larger small body under your classification rule; neither label supplies a probability by itself.

Turn the Observation Into a Rule

You might test a doji after a defined decline followed by a completed bullish candle. Specify the decline, the doji tolerance and what qualifies as the later candle. The entry can only occur after that later information is available.

Waiting for confirmation changes timing and price. It does not guarantee a higher win rate. Nor is a daily doji automatically more reliable than an intraday one: each needs a strategy and data sample.

Record the Failures Too

Keep dojis followed by continuation, sideways movement and reversal. Use the same exit horizon and cost assumptions for each observation. There is no general 50–60% reversal probability established by the pattern name.

If an exit uses the doji's high or low, calculate the distance from the actual entry, not the doji close. Account for fees and adverse execution. Read candlestick mechanics before interpreting a shape as a trade.

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