Key rule: a Doji is a context word, not a sentence. Alone it means "indecision." Its meaning as reversal depends on the preceding trend and confirmation by the next candle.
Open price is (almost) equal to close price → near-zero real body, signalling indecision.
Doji quantitative condition?
Body ratio ∣C−O∣/(H−L)≤ε (commonly ≤0.05).
Why normalise the body by (H−L)?
So the definition works across any price level — a fixed rupee body is huge for a cheap stock, trivial for an expensive one.
Dragonfly Doji shape and bias?
Body near the HIGH, long LOWER shadow (T-shape); bullish reversal after a downtrend.
Gravestone Doji shape and bias?
Body near the LOW, long UPPER shadow (inverted-T); bearish reversal after an uptrend.
Long-legged Doji meaning?
Both shadows very long → extreme indecision / high volatility session.
Does a Doji alone confirm a reversal?
No — it needs a prior strong trend plus confirmation from the next candle.
Doji vs spinning top difference?
Doji body ≈ 0 (a line); spinning top has a small but clearly visible body.
Upper shadow formula?
H−max(O,C).
Lower shadow formula?
min(O,C)−L.
Recall Explain to a 12-year-old (Feynman)
Imagine a tug-of-war between a red team (sellers) and a blue team (buyers). All day they pull the rope back and forth. When the whistle blows, the flag is right back in the middle — nobody won. That "draw" candle is a Doji. If the flag first got yanked far toward one side but snapped back, that's a Dragonfly (yanked down, came back up — blue is getting strong) or a Gravestone (yanked up, came back down — red is getting strong). A draw after a long winning streak is a warning that the tired team might be about to lose.
Doji ka matlab simple hai: jis candle mein open aur close almost barabar ho, uska body ekdum patli line jaisa dikhta hai. Yeh candle market ki indecision dikhata hai — poore session bulls aur bears ladte rahe, par end mein match draw ho gaya, price wahin aa gaya jahan se shuru hua tha. Isko pakadne ka pakka tareeka ratio hai: ∣C−O∣/(H−L) agar 0.05 se chhota hai to Doji confirmed. Ratio isliye lete hain kyunki ₹5 ka body sasta stock ke liye bada hai par mehenga stock ke liye kuch bhi nahi.
Variants sirf wick (shadow) ki length se decide hote hain. Long-legged mein dono taraf lambi wick — matlab bahut zyada volatility aur confusion. Dragonfly mein body upar (high ke paas) aur lambi neeche wali tail — sellers ne neeche giraya par buyers ne wapas kheench liya, isliye downtrend ke baad yeh bullish signal hai. Gravestone ulta hai: body neeche, lambi upar wali wick — uptrend ke baad yeh bearish signal, rally ki "death".
Sabse important baat: Doji akela koi signal nahi hai, yeh ek context word hai. Agar market sideways chal raha hai to Doji roz banenge aur matlab kuch nahi. Reversal tabhi maano jab (1) pehle ek strong trend tha aur (2) agli candle confirm kare. Mnemonic yaad rakho — Dragonfly upright T (bullish, zameen se udta hai), Gravestone ulta T (bearish, kabar ke upar khada). Isse Dragonfly aur Gravestone kabhi confuse nahi honge.
