Doji in gold trading
A doji is a candle whose open and close are almost equal, showing indecision; on gold it matters most at key levels after a strong move, not mid-range.
Also called Doji candle, Dragonfly doji, Gravestone doji, Long-legged doji
A doji is a candlestick where the open and close are at or very near the same price, leaving a tiny body with wicks of varying length. Variants include the long-legged doji (long wicks both sides), the dragonfly (long lower wick, closing near the high) and the gravestone (long upper wick, closing near the low).
How it applies to gold trading
A doji says buyers and sellers ended the period in balance. On its own that is not a signal; gold forms dojis constantly in quiet hours. Context makes it useful: a doji at resistance after a strong rally, or a gravestone doji after a spike into a liquidity level, suggests the push has stalled. The next candle confirms or rejects the idea.
Because gold’s open and close depend on the platform’s daily cut-off, daily dojis can differ between platforms. Intraday dojis are more consistent.
Worked example
Example (hypothetical numbers): gold rallies from 3,980 to 4,045 and prints a 4-hour gravestone doji: open 4,040, high 4,058, low 4,036, close 4,041. The next candle closes at 4,028, below the doji’s low. A trader sells at 4,027 with a stop above the doji high at 4,060, risking $33, sized at 0.03 lots ($99).
A common mistake
Trading every doji as a reversal. Without a level and a strong prior move, a doji is just a pause.
See also: Candlestick, Pin bar, Engulfing pattern, Wick.
Frequently asked questions
Is a doji bullish or bearish?
Neither on its own. It shows indecision. Its meaning depends on where it forms and what the next candle does.
What is a gravestone doji?
A doji with a long upper wick and the open and close near the low, suggesting buyers pushed higher but were rejected.
Why do daily dojis differ between gold platforms?
Platforms use different daily cut-off times, so the open and close of the daily candle can differ.