CANDLESTICK PATTERN
Doji
A candle with a close near its open; it records balance, not an automatic reversal.
Rules visible before the outcome
- Absolute body is below a fixed fraction of full range
- Minimum range filter prevents tiny inactive bars
- Location is labelled independently
02 / CONFIRMATION
When the idea becomes eligible
A later break or close that resolves the balance.
03 / INVALIDATION
What proves it wrong
The opposite extreme of the resolution pattern.
The attractive mistake
Doji occur in trends, ranges and illiquid periods; shape alone has little context.
Make it falsifiable
Compare doji at extremes with a control sample of all bars at the same locations.
1Freeze the geometry
2Timestamp eligibility
3Count every outcome
4Test unseen data