Long-Legged Doji

DEFINITION of 'Long-Legged Doji'

A type of candlestick formation where the opening and closing prices are nearly equal despite a lot of price movement throughout the trading day. This candlestick is often used to signal indecision about the future direction of the underlying asset.

BREAKING DOWN 'Long-Legged Doji'

Long-legged doji candles are deemed to be the most significant when they occur during a strong uptrend or downtrend. The long-legged doji suggests that the forces of supply and demand are nearing equilibrium and that a shift in the direction of the trend may be coming.

RELATED TERMS
  1. Spinning Top

    A type of candlestick formation where the real body is small ...
  2. Doji

    A name for candlesticks that provide information on their own ...
  3. Dragonfly Doji

    A type of candlestick pattern that signals indecision among traders. ...
  4. Tri-Star

    A type of candlestick pattern that signals a reversal in the ...
  5. Bullish Belt Hold

    A trend in candlestick charting that occurs during a downward ...
  6. Gravestone Doji

    A type of candlestick pattern that is formed when the opening ...
Related Articles
  1. Trading

    Star Formations Spotlight Luminary Trades

    Morning, evening and doji stars will have you basking in better trading profits.
  2. Trading

    Candlesticks And Oscillators For Successful Swing Trades

    Take advantage of short-term price moves by pinpointing reversals.
  3. Trading

    Candlestick Charting: What Is It?

    Discover the components and basic patterns of this ancient technical analysis technique.
  4. Trading

    Using Bullish Candlestick Patterns To Buy Stocks

    These five popular candlestick chart patterns signal a bullish reversal in downtrend.
  5. Trading

    Western Line Vs. Candlestick Charting

    These methods both have their merits, but they may be strongest when combined.
  6. Trading

    Day Trading Strategies for Beginners

    Interested in day trading? From picking the right type of stock to setting stop-losses, here's a tutorial on how to trade wisely.
  7. Trading

    Candlesticks Light The Way To Logical Trading

    Crowd psychology is the reason this technique works. Find out how to make it work for you.
  8. Trading

    Understanding the "Hanging Man": The Optimistic Candlestick Pattern

    A hanging man is a candlestick pattern that hints at the reversal of an uptrend. The candlestick is recognizable by a small box atop a long, narrow "shadow."
  9. Markets

    The 5 Most Powerful Candlestick Patterns (NUAN, GMCR)

    Statistics show unusual accuracy for the buy and sell signals of certain candlestick patterns like abandoned baby, evening star, and three black crows.
  10. Trading

    Advanced Candlestick Patterns

    Go beyond the basics! Learn to identify and trade island reversals, kicker patterns and more.
RELATED FAQS
  1. Are Doji patterns important when trading forex pairs?

    Find out why forex traders make heavy use of candlestick patterns such as the doji, which can be used as a signal of market ... Read Answer >>
  2. What are some of the most common technical indicators that back up Doji patterns?

    Learn important technical indicators that reinforce a doji candlestick pattern to take advantage of profitable trading opportunities. Read Answer >>
  3. What are common trading strategies when identifying a Doji pattern?

    Use simple trading strategies to profit with doji candlestick patterns; a doji can signify a trend change or a temporary ... Read Answer >>
  4. How effective are Dojis in telling a change in direction of overall trends?

    Profit from knowing the correct way to trade the doji candlestick. Learn how to spot the best trading opportunities and avoid ... Read Answer >>
  5. What is the difference between a doji and a dragonfly doji?

    Learn why doji patterns on a candlestick chart are considered important, and discover how a dragonfly doji is interpreted ... Read Answer >>
  6. How is a Gravestone Doji Pattern, followed by a Dragonfly Doji, interpreted by analysts ...

    Learn the difference between gravestone doji and dragonfly doji candlesticks, and what interpretations traders apply to them ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center