Journal ·

A doji at support is a pause, not a purchase

Students love a doji that sits on a line they have drawn. The line may be real. The doji still only says that open and close agreed to meet.

Nalinee Phong

Desk with financial documents, glasses, and a calculator

A doji is a session in which the open and the close print almost on top of each other. That is the whole claim. It does not claim that buyers have arrived, that a level will hold, or that the next session will rise. In the studio we let people get the definition right, then we spend twice as long on what the definition refuses to say.

Support is a zone you have already been using

If the doji sits on a horizontal line you drew last month because price had turned there twice, the doji is information about indecision at a place the market has respected. That is more interesting than a doji in the middle of nowhere. It is still not a purchase. Indecision at a respected level can resolve downward just as cleanly as upward. We have a wall chart of a USDTHB stretch from 2024 where three dojis sat on the same band and the fourth session broke it without drama.

What we ask you to write instead

Margin note we accept: “Doji after a five-day fall, sitting on the February swing low. Waiting for a close back above this session’s high.” Margin note we cross out: “Doji = buy.” The first sentence can be wrong about the level and still be a reading. The second sentence is a wish.

If your homework keeps turning dojis into entries, bring the pages to a review hour. The correction is almost always the same: you stopped writing after the pattern name. Add the wait.

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