What is a Doji candle?
Suppose your asset closes at the same price it opened at. It doesn’t matter what kind of storm und drang was happening in the market that day — even if your asset went on a rollercoaster ride, it still ended up where it started. This activity on a daily timeframe will then be represented by one of a number of types of Doji candle. It might have very long shadows, or not, but it will definitely have almost no body.
What does a Doji candle mean?
It means buyers and sellers ultimately exerted equal force on the price. It’s a stalemate between the two opposing forces.
If the all-shadow, no-body candle appears during a lot of volume, a breakout in one direction or another is inevitable, simply because something’s got to give. If the volume is low, though, that means both sellers and buyers are simply losing interest and the market is consolidating.