And here is a simplified example of an appearance of a Doji after strong moves – as bullish as bearish: Appearance of a Doji after a Black Marubozu or any strong down move If a Doji appears after series of strong black candles, it tells us that the number of Sellers became fewer, and cautions us. If more sellers will come – the move down will continue, if not – there may be a reversal or a retracement could happen. That’s why Doji is just a “Caution” pattern, not a reversal. The 4-price Doji even more undecided, because it shows very small trading range. Bulls and bears not just were unable to estimate the winner - they also were too lazy while making their estimation. Pipruit: And what about the Dragonfly and Gravestone? Commander in Pips: Although from time to time you can see them in the middle of some move, and in this case you can treat them as Simple Doji or Tweezers, more often they appear in reversal points. I think that you should guess why… Pipruit: …Because the location of a close price and/or trading range. So, a Doji with close at the high (dragonfly), should appear before a market reversal to the upside and with a Gravestone – to the downside. Commander in Pips: That’s right. The reason is the same – the high close price tells us that the bulls were able to return to their positions at the end of the trading period and pushed the bears back, while Gravestone tells about the opposite situation – the bears have conquered the bulls. That’s why these types of Doji can be part of reversal patterns, or even be reversal patterns by themselves. Appearing Doji after White Marubozu or any strong up move If a Doji appears after series of strong white candles, it tells that the number of Buyers became fewer, and cautions us that buyers are gradually becoming exhausted. If more buyers will appear – the move up will continue, if not –reversal or retracement down could happen.