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In this lecture we are going to have a rapid look at the doji before studying separately

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the most significant form of dojis. What kind of Candlestick is a doji? A doji is a candle where the opening

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price matches with the closing price.

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So opening and closing prices are the same. Even if the ideal doji is like this, we can use some flexibility

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to this rule.

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If the opening and closing prices are within a few pips of each other, the candle could still be viewed

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as a doji.

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There's no rigid rule about this,

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I cannot say something like opening and closing prices must be within five pips, for example, for the

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candle to be considered a doji. It is subjective and you will develop your own opinion with time

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and experience.

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So the doji has just one rule: opening and closing prices are the same or at least they are very close

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to each other.

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But why am I showing you this candle with the opening and closing prices right in the middle of

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the session?

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Actually, this is just an example of a doji. As long as the opening price matches with the closing price,

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the candlestick is a doji.

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So this is a doji, this is

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another doji, this is still a doji.

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All these candles are dojis. Before we analyze the dojis one by one,

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let's see the action behind this candlestick and what it shows us about the fight between buyers and

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sellers.

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While it's been easy for the previous candlesticks to understand the formation of the shadows, it's not

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so easy for the doji.

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It can be that buyers were in control at the beginning then sellers pushed the price down and at the

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end buyers had the power to close at the opening price.

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It can also be the opposite.

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Sellers were in control, then buyers pushed the price up and sellers closed at the opening price.

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There are so many other scenarios and we can't really know what happened if we don't go to a lower timeframe

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to analyze the candle.

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But don't worry, you don't need to do it.

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Even if we don't know exactly the action that led to the formation of the doji, we know the only necessary

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information: the doji represents indecision. Buyers and sellers engaged in a fight

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and there's no winner at the moment.

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Imagine a tennis match between buyers and sellers.

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The doji says that in this moment the score is tied at six to six and they are going to play the

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tiebreak.

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Now you know what a doji is,

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but we need to go a bit more in depth and analyze the different types of dojis.