When candlesticks go indecisive, the trend prepares to flip

Every candlestick on your chart is a battle between buyers pushing up and sellers pushing down. A Doji or spinning top is when neither side won decisively, leaving a long shadow of failed momentum. In a downtrend, a hammer-shaped Doji shows sellers got tired and buyers stepped in briefly. In an uptrend, a shooting star Doji signals buyers lost control, and sellers may take over. Picture a tug-of-war team panting in the middle—neither side has enough muscle to pull the rope further.

You don’t trade these candles alone. Wait for confirmation: a 5-minute candle that pierces the opposite direction or an RSI dipping below 10 (for bottom reversals) or climbing above 90 (for tops), ideally on heavy volume. That tells you the struggling side just surrendered ground and the other camp is surging forward.

Here’s the power in this: you’re watching psychology at work. The indecision wick is the clearest signal that a trend has run its course—fear and greed are equalized for a moment, then one side must win. Algorithms might sniff a reversal but delay until real money jumps back in. That’s your opening.

Behavioral research confirms that extreme price exhaustion is a leading indicator of mean reversion. Learn to read those wicks and you’ll trade less noise and more reality.

Shift to 5-minute candlestick charts each morning and circle any top-heavy Doji or bottom-heavy hammer. Pair it with an RSI above 90 or below 10 or a volume spike to confirm exhaustion. Then set an entry at the next opposite break—a fresh swing high for bottoms or low for tops—and plan your stops close to the wick’s tip. This method aligns with how real traders and algorithms spot real reversals.