Significance of Doji candle formation

I am a newbie trying to learn as much as I can.

I am reading up on Candlestick charts and doji formation on babypics school. I understand the various doji candles but do not know what TF to look. For ex. today I see a lot of doji candles formed on the eur/usd chart in the 1 min and 5 min charts. If I change the TF to h1 or daily then those doji candles do not appear.

If doji candles are significant then which TF do you use to read them? Also what is the most important doji that pros use?


Dojis in and of themselves are just another candle. They could mean many things, but the most common is, that price has found equilibrium. At least for the moment. A trend may continue, or it may fail, and reverse at that point.

The longer the time frame, the fact remains that price has found equilibrium, BUT, those have a tad more significance. If they happen at an obvious S/R zone, or fib point, and price has turned in the past, it may be likely to do so again. In that case, had you been long, and got a nice ride out of a trend, you may wish to protect some gains at that point, and rearrange your stop for the remainder.

If you are looking for a trade, you could take a punt at a low risk high reward entry.

It’s all about strength of entry, and what is happening on the chart.

Dojis or candle patterns in general are just really IMHO one type of confirmation. But they have a serious weakness, they are not consistent through out several timeframes. What might be a doji on one timeframe could just be to candles of near equal size on another or completely disappear in another. I think of candles in the context of capital flow. How did the money move over this period which would create this type of resulting candle. This way it’s not the candle itself that matters but the action that created it.

What is a doji ,let’s say an evening star. Price has rallied for a while And now has stalled and was able to push price higher but didn’t close higher. How did that happen? Well that point price met sell orders or resistance. So there was selling into the buying. This phenomenon is what created any and all dojis. Buying into selling or selling into buying. This occurrence is consistent among all time frames. It is the root of all support or resistance. If you think about price like that you can see the story unfold and use other tools to confirm or give you low risk high probability trades. IMHO doji are just a simple easy to identify candle or sign that says, hey look here we met opposing capital flow.

Thanks MT & MH.

Dojis were looking different on each TF and hence I wanted to know which TF to look for. Yesterday night I was watching Eur/Usd on 1 min chart and after a small drop a doji formed with a buy confirmation. I went long with Eur and made about 250 pips. Mine is a micro account and hence my profit was small but still significant for me. Now I understand that I will have to look for different indicators including doji.


The main issue that should come into consideration is not what sort of a candle forms, but where it forms.

The higher the TF, the stronger the signal.

I would echo the three excellent answers you have already received, but would add that personally I would not read much into a doji on a 1 minute chart. I think that higher timeframe S&R levels have more strength, as they have been respected for longer. The importance you attach to them should, in my opinion, correlate to the intended duration of your trade. If I see a doji out of an area of Resistance on the Daily chart, I might short it and hold the trade for days. If I see the same pattern on the 30 minute chart I might hold the same trade only during that morning. If I see it on the 1 minute chart I will just watch and not enter the trade. But we’re all different, that’s just my view.


any candle formation depends on the time of the day it happens and specially on the price it happens… out of the box a doji is the same as any other candle :slight_smile:

Thanks to all of you.

Now I understand that doji in itself is not a big indicator but coupled with S/R it is a good indicator.

I will continue graduating from pip school :slight_smile: