What is the doji candlestick?
The doji candlestick is a sign of indecision with neither the buyers and sellers having control of the market, causing the session to open and close at the same price producing a doji candlestick. The doji is seen as a start of a consolidation period and focus should be put on the following candles.
Other types of doji candlestick
The long legged doji
The long legged doji shows at some point in the session the sellers were in power but also in the same session the buyers were in power showing a strong fight. Seeing this pattern at the end of a strong trend shows possibility for a trend reversal.
The grave stone doji
The grave stone doji shows the session open and closed at the same price but at some point during the session the bulls were using the price up but were overpowered buy the bears. This is seen as a major reversal pattern at the end of a strong trend.
The dragonfly doji
The dragonfly doji is the opposite of the grave stone doji showing the bears were in charge during the session but were beaten by the bulls and closing the session at the opening price, showing a reversal of a trend.