Prosus just printed a textbook doji at $11.16 after sliding 20% from its October highs. Volume spiked to 4x normal. The question: Is this indecision at a turning point, or just a pause before more selling?
What We're Looking At
Monday's session opened at $11.17 and closed at $11.16 — a one-cent body. But the candle tested $11.31 on the high and $11.04 on the low, creating nearly symmetrical shadows. That's a doji: buyers and sellers fought hard, and neither won.
The Quality Check
Not all doji are created equal. Here's what makes this one worth watching:
Body-to-range ratio: 3.7% — well under the 10% threshold for a meaningful doji. The smaller the body relative to the range, the stronger the indecision signal.
Shadow balance: Upper shadow of $0.14, lower shadow of $0.13. When shadows are nearly equal, it shows genuine equilibrium — not a failed rally or failed selloff, but true back-and-forth.
The volume: This is the key. PROSY traded 2.94 million shares versus 661,000 the prior session — a 4.4x spike. High volume on a doji means the indecision happened with conviction. Lots of participants, no resolution.
As Nison puts it: "A doji represents indecision. Indecision, uncertainty, or vacillation by buyers will not maintain a rally. It takes the conviction of buyers to sustain a rally." The same logic applies in reverse — sellers are showing hesitation here.
Why This Setup Gets Attention
Context amplifies patterns. PROSY's doji lands at oversold extremes:
RSI at 26.46 — below 30 is oversold territory
Stochastics at 5.12/9.62 — about as low as they go
20% decline from October's $14 highs
Below the 50 SMA ($12.32) — firmly in downtrend
A doji in the middle of a range means nothing. A doji after a steep decline with spiking volume and oversold indicators? That's when you pay attention.
What to Watch
Bullish confirmation: A close above $11.31 (today's high) on decent volume would suggest buyers are taking control.
Invalidation: A close below $11.04 (today's low) continues the downtrend — the doji was just a rest stop.
The Lesson
Doji gain power from context. A tiny body after a steep decline, with a volume spike at oversold extremes, tells a different story than the same candle in a sideways market. PROSY's 3.7% body-to-range and 4x volume happened exactly where you'd want to see indecision — at potential exhaustion.
The Candlestick Hit teaches pattern recognition through real-time market examples. This is educational content, not trading advice.