OPEN: Double Doji Drama

The doji is the ultimate candlestick pause—small in body, long in implication. It’s the shape of uncertainty: a candle that opens and closes at nearly the same price, leaving behind a cross-like figure. As Steve Nison, the father of modern candlestick analysis, put it: “The doji is a powerful candlestick signal that suggests indecision and a potential turning point.”

In classic form, a doji represents a standoff between buyers and sellers. Neither side wins the day, and the market hesitates, unsure of its next step. It’s often found at key inflection points—either after strong uptrends (where it can warn of reversal) or deep in downtrends (where it can whisper of relief). Below is a textbook example of what a doji looks like:

Now, zoom in to the chart of Opendoor Technologies Inc. (OPEN). We’ve highlighted two doji candles in yellow boxes: one from June 3rd, the other from June 21st, both materializing in a significant downtrend.

Opendoor, a real estate tech company that's been hit hard by higher rates and shrinking housing demand, has watched its stock price tumble from above $0.90 in May to just above $0.50 in late June.

The first doji on June 3rd came after an aggressive selloff, and it hinted at temporary exhaustion. What followed was a brief upside bounce—three green candles before sellers regained control. Fast forward to June 21st, and we see another doji form after a long string of red days, this time paired with a high-volume drop and earnings-related volatility. Once again, a sign of potential indecision… or a shift in momentum?

This repeated appearance of the doji near relative lows raises a key psychological flag: sellers may be running low on conviction. Buyers aren’t winning yet, but they are starting to push back.

Trading a Doji
In practice, candlestick traders treat the doji as a cue—not a trigger. It says: "Watch here." Traders often wait for confirmation on the next candle—a bullish close above the doji high may suggest a reversal; a bearish break below signals continuation. “Let the market confirm the doji,” Nison advised. “It’s the next candle that gives it meaning.”

What to Watch Next
Look for a follow-up candle that closes strongly in either direction. A green close above the doji high could signal a short-term reversal. But if sellers step back in, it may just be another pause before a continued grind lower.

Key Takeaways

• The doji is a candle of hesitation, often signaling a tug-of-war near turning points.

• OPEN has printed two doji candles recently — on June 3rd and June 21st.

• Each has occurred after prolonged selling, hinting at growing uncertainty among bears.

• Confirmation is key — wait for the next candle to show direction.

• As always, patterns provide insight, not certainty.