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?

    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?

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

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