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.

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RELATED FAQS
  1. Are Doji patterns important when trading forex pairs?

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  2. What are some of the most common technical indicators that back up Doji patterns?

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  3. What are common trading strategies when identifying a Doji pattern?

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  4. How effective are Dojis in telling a change in direction of overall trends?

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  5. What is the difference between a doji and a dragonfly doji?

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