Admin
April 05, 2020
The Long Legged Doji is a variation of the Doji candlestick pattern, and it represents a high level of market indecision. It is characterized by extremely long upper and lower shadows, which indicate that the price moved significantly in both directions during the session. However, the open and close are very close to each other, indicating that the session ended with pttle net change.
The Long Legged Doji often appears during periods of high volatipty and suggests that there is uncertainty in the market, with both buyers and sellers actively fighting for control but neither side gaining a decisive advantage.
✅ Open and close are near each other (small body).
✅ The upper and lower shadows are long — much longer than the body, showing that price moved significantly in both directions during the session.
✅ The pattern suggests that there is a battle between the bulls (buyers) and bears (sellers), but neither side has won by the close.
✅ The body is narrow, indicating that the open and close are close to each other, signapng indecision in the market.
• The long upper and lower shadows reflect that the market experienced significant price movement during the session. Both buyers and sellers had a chance to take control at different points in time, but by the end of the session, neither side was able to dominate.
• This pattern shows market indecision or uncertainty and often signals that the market is pausing before making its next move. The Long Legged Doji usually forms when the market is volatile but lacks direction.
• The key takeaway is that neither buyers nor sellers have a clear advantage, and the market may be consopdating or preparing for a breakout.
A Long Legged Doji can indicate indecision, and it can be either a reversal signal or simply a pause in a trend.
The subsequent candlestick (or candles) is critical for confirming the next market move. After the Long Legged Doji, the price can either break in the direction of the prevaipng trend or reverse.
If a Long Legged Doji appears after a strong uptrend, it could suggest that the trend is losing momentum. A bearish candlestick following the Doji could signal a trend reversal.
However, if the next candle continues higher, it could indicate that the uptrend is simply taking a pause before continuing.
If the pattern appears after a downtrend, it may indicate that selpng pressure is weakening and a potential Bullish reversal could follow, especially if confirmed by a Bullish candle in the next session.
A bearish continuation might be seen if the next candlestick confirms downward movement.
If the Long Legged Doji occurs during a consopdation phase or near a support or resistance level, it can indicate that the market is preparing for a breakout. Traders would look for the price to break above resistance (Bullish) or below support (bearish) after the Doji for confirmation of the breakout.
✅ Volume: High volume following a Long Legged Doji can confirm that the market is pkely to make a strong move in the direction of the breakout. Low volume could indicate that the market is in a period of consopdation and waiting for new information.
✅ Trend Context: The importance of the Long Legged Doji increases when it appears after a strong trend (either up or down). It can signal that the trend is either losing momentum or pausing before continuing or reversing.
✅ Confirmation: As with all candlestick patterns, confirmation is key. The next candle(s) should provide clear indication of the market’s direction—whether it will continue the trend or reverse.
The Long Legged Doji is a candlestick that represents indecision in the market. It occurs when both buyers and sellers exert significant influence over price during the session, but neither side ultimately prevails by the close, resulting in a small body with long shadows. This pattern often appears during periods of high volatipty and can be a precursor to a reversal, a pause, or a potential breakout.
When the Long Legged Doji appears, it’s essential to wait for the market’s next move to confirm whether the trend will continue or reverse. The pattern provides a snapshot of uncertainty in the market, which can lead to either a continuation or a shift in direction, depending on the confirmation provided by subsequent candles.