Doji

A doji is a candlestick pattern where a stock's opening and closing prices are nearly identical, creating a cross or plus-sign shape on a price chart. You'll see dojis when traders can't agree on direction—buyers and sellers battled all day, but neither side won. Dojis matter because they signal indecision and potential turning points; after a strong price move, a doji might hint that momentum is fading. For example, if TechCorp stock rallied hard for three days, then formed a doji on day four, some traders interpret that as a warning sign to watch for a reversal. They're not foolproof signals, but they're worth noticing alongside other chart patterns.