#creatorpad 📅 Series: Japanese Candlestick Education to continue lesson nine with a live example in BTC on a 15-minute frame
The doji candle is one of the most important Japanese candlesticks that indicates market indecision, where the opening price is very close to the closing price, resulting in a very small body and shadows that can be long or short depending on the type.
Its presence may indicate that the struggle between buyers and sellers has reached a temporary balance point, and it often comes before a strong movement.
2. Main types of the doji candle
1. Classic Doji
Very small body in the middle.
Approximately equal upper and lower shadows.
Indicates a complete balance between supply and demand.
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2. Long-Legged Doji
Very long shadows from the top and bottom.
Indicates severe volatility and indecision in direction.
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3. Dragonfly Doji
Very long lower shadow, with almost no upper shadow.
Bullish reversal signal if it comes after a downtrend.
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4. Gravestone Doji
Very long upper shadow, with almost no lower shadow.
Bearish reversal signal if it comes after an uptrend.
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3. Practical example – $BTC /USDT 15-minute frame
📍 Status:
In the attached chart, at the level of 122,335.16, a doji candle appeared with a very small body and upper and lower tails, after a strong uptrend.
📊 Analysis:
Its appearance near a peak with a downward divergence in the MACD indicator.
Followed by a red candle, confirming the start of a downtrend.
This condition applies to the classic doji as a bearish reversal signal.
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4. Professional tips for using the doji
Do not rely on the doji alone, but confirm with other indicators (MACD, RSI, trading volume).
The strength of the signal depends on where it appears:
After a strong trend → likelihood of reversal.
Inside a weak trend → There may be a continuation.
The doji in strong support or resistance areas gives greater credibility.
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5. Summary
The doji is not just a shape on the chart, but it is the market's language that tells you that buyers and sellers are in a tug of war. Understanding this message helps you anticipate the next movement and avoid entering losing positions.
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