Long-legged doji A candlestick chart pattern used by technical analysts to signal indecision and possible reversal in a Trending Market, which is characterized by almost identical open and close prices despite a wide trading range. Mar 17, 2018 LONG LEGGED DOJI CANDLESTICKS. The long legged doji candlesticks have long upper and lower shadows with an open and closing price that was basically the same. This makes the shape of a cross that’s more defined than the smaller doji. The reason for this is because the open and closing price are virtually the same. So the real body is just a line.
Long legged doji candlesticks and how to trade them with proper entries and stop levels.
Long-legged doji candles are deemed to be most significant when they occur during a strong or downtrend. The long-legged doji suggests that the forces of supply and demand are nearing equilibrium and that a trend reversal may occur. This is because equilibrium or indecision means that the price is no longer pushing in the direction it once was.
May be changing. For example, during an, the price is getting pushed higher and the of most periods is above the. The long-legged doji shows there was a battle between the buyers and sellers but ultimately they ended up about even. This is different than the prior periods where the buyers were in control. The long-legged doji has long upper and lower shadows and a small. The pattern shows indecision and is most significant when it occurs after a strong advance or decline. While some traders may act on the one-candle pattern, others want to see what the price does after the long-legged doji.
The pattern is not always significant, and won't always mark the end of a trend. It could mark the start of a consolidation period, or it may just end up being an insignificant blip in the current trend.Long-Legged Doji Trading Considerations.