A Doji is a candlestick pattern that looks like a cross as the opening price and the closing prices are equal or almost the same.
A Doji is quite often found at the bottom and top of trends and thus is considered as a sign of possible reversal of price direction, but the Doji can be viewed as a continuation pattern as well.
5 Types of Doji
Let’s assume you’re following Microsoft’s share price, which opens the trading day at $104.50.
As buyers and sellers enter the market, the share price starts moving, hitting a low of $102.00 and a high of $107.00 before closing at $104.20. This creates a long-legged Doji.